The bank said it studied P/NAV since it is considered the standard valuation multiple for the gold sector. Average P/NAV for senior gold producers, who exceed 1 million ounces a year, is currently around 2.11, compared to 2.31 during the previous peak, Credit Suisse reported.
Average P/NAV for intermediate gold producers, with annual gold production below 1 million ounces, is currently around 1.19 times, compared to around 2.34 during the previous peak. “This trend is more pronounced for mid-cap/intermediate gold stocks, as large-cap/senior gold stocks have re-rated more quickly with generalist inflow,” the bank said.įor companies that Credit Suisse covers in North America, the average P/NAV is currently around 1.80 times, compared to around 2.25 during the previous peak. Valuation multiples are still below where they were in the last bull cycle for the gold market, Credit Suisse said. Credit Suisse sees more room for upside in gold-mining stocks based on the ratio of stock prices to net asset value (P/NAV), as well as an expectation that gold prices will rise some more.
0 kommentar(er)
