Five Undervalued Gold Stocks

01/26/2011 7:07 am EST

Focus: STOCKS

By the Staff at Kapitall.com

Today we’ll review a list of gold stocks that are undervalued relative to their competitors when using a list of fundamental ratios. These ratios include:

  • Trailing twelve-month (TTM) price-to-earnings (P/E) ratio

  • Trailing twelve-months price-to-sales ratio

  • Most recent quarter’s price-to-book ratio

  • Trailing twelve-month price-to-cash-flow ratio

  • Trailing twelve-month price-to-free-cash-flow ratio

Is this a list of falling knives, or are there some hidden gems in this list? Keep in mind that falling gold prices don’t necessarily spell doom for the companies in that space.

What do you think? Let us know in the comments.

The list has been sorted alphabetically.

Gold Fields Ltd. (GFI):

  • Market cap of $11.57 billion

  • TTM P/E ratio at 25.94 versus industry average at 30.91

  • TTM price-to-sales ratio at 2.6 versus industry average at 87.51

  • Price-to-book ratio at 1.92 versus industry average at 3.26

  • TTM price-to-cash-flow ratio at 9.41 versus industry average at 18.25

  • TTM price-to-free-cash-flow ratio at 65.25 versus industry average at 25.47

  • Short float at 0.71%, which implies a short ratio of 1.38 days. The stock has gained 34.7% over the last year



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Goldcorp Inc. (GG):

  • Market cap of $29.64 billion

  • TTM P/E ratio at 22.35 versus industry average at 30.91

  • TTM price-to-sales ratio at 9.1 versus industry average at 87.51

  • Price-to-book ratio at 1.74 versus industry average at 3.26

  • TTM price-to-cash-flow ratio at 15.67 versus industry average at 18.25

  • TTM price-to-free-cash-flow ratio at 100.83 versus industry average at 25.47

  • Short float at 0.94%, which implies a short ratio of 1.12 days. The stock has gained 9.61% over the last year



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Kinross Gold Corporation (KGC):

  • Market cap of $19.13 billion

  • TTM P/E ratio at 15.65 versus industry average at 30.91

  • TTM price-to-sales ratio at 6.86 versus industry average at 87.51

  • Price-to-book ratio at 1.44 versus industry average at 3.26

  • TTM price-to-cash-flow ratio at 13.93 versus industry average at 18.25

  • TTM price-to-free-cash-flow ratio at 42.94 versus industry average at 25.47

  • Short float at 0.72%, which implies a short ratio of 1.34 days. The stock has lost 4.3% over the last year



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Newmont Mining Corp. (NEM):

  • Market cap of $27.53 billion

  • TTM P/E ratio at 13.69 versus industry average at 30.91

  • TTM price-to-sales ratio at 2.9 versus industry average at 87.51

  • Price-to-book ratio at 2.25 versus industry average at 3.26

  • TTM price-to-cash-flow ratio at 7.05 versus industry average at 18.25

  • TTM price-to-free-cash-flow ratio at 16.47 versus industry average at 25.47

  • Short float at 2.68%, which implies a short ratio of 1.94 days. The stock has gained 26.77% over the last year



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Yamana Gold, Inc. (AUY):

  • Market cap of $8.18 billion

  • TTM P/E ratio at 24.47 versus industry average at 30.91

  • TTM price-to-sales ratio at 5.27 versus industry average at 87.51

  • Price-to-book ratio at 1.15 versus industry average at 3.26

  • TTM price-to-cash-flow ratio at 14.06 versus industry average at 18.25

  • TTM price-to-free-cash-flow ratio at 33.5 versus industry average at 25.47

  • Short float at 0.79%, which implies a short ratio of 0.67 days. The stock has gained 3.18% over the last year 



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By the Staff at Kapitall.com

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