Centerra Gold Inc. (CGAU)
Basic Materials · NYQ · US
Fundamentals
Valuation and ratings
Centerra Gold Inc. trades at USD15.24, which is 127% below the USD34.56 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 78 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 5.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Centerra Gold Inc.
Centerra Gold Inc. engages in the operation, development, exploration, and acquisition of gold and copper properties in North America, Turkey, and internationally. The company also owns and operates a molybdenum business unit, which includes a metallurgical processing facility and two primary molybdenum properties. Its principal assets include the Mount Milligan gold-copper mine located in British Columbia, Canada; the Öksüt gold mine located in Türkiye; the Kemess project in British Columbia, Canada; the Goldfield District project in Nevada, United States; the Thompson Creek Mine in Idaho; and 75% owned the Endako Mine in British Columbia, Canada. The company was incorporated in 2002 and is headquartered in Toronto, Canada.
CGAU passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Centerra Gold Inc. (CGAU) undervalued?
Against our discounted cash flow estimate of USD34.56, CGAU at USD15.24 is 127% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CGAU's P/E ratio?
CGAU trades at 5.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.
