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Kinross Gold Corporation (KGC) Stock: How Does it Score on Valuation Metrics?

Monday, February 05, 2024 09:49 AM | InvestorsObserver Analysts

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Kinross Gold Corporation (KGC) Stock: How Does it Score on Valuation Metrics?

Kinross Gold Corporation (KGC) receives a strong valuation score of 92 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. KGC holds a better value than 92% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 92
KGC gets a 92 Valuation Rank today. Find out what this means to you and get the rest of the rankings on KGC!

Metrics Analysis

KGC has a trailing twelve month Price to Earnings (PE) ratio of 27.42. The historical average of roughly 15 shows a poor value for KGC stock as investors are paying higher share prices relative to the company's earnings. KGC's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.25 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
KGC currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.9. The market is currently fairly valuing KGC in relation to its projected growth due to the PEG ratio being around the fair market value of 1. KGC's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

KGC's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. KGC's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Kinross Gold Corporation (KGC) stock.

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