Assessing Westgold Resources (ASX:WGX) Valuation After Record Production, Strong Cash Position And Planned Valiant Demerger

Simply Wall St.

Jan 23

Westgold Resources (ASX:WGX) has drawn fresh investor attention after reporting record Q2 FY26 gold production of 111,418 ounces, reaffirming its FY26 guidance while also flagging a planned demerger ...

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The recent 1...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7506":"金矿股","BK7104":"黄金","WGX.AU":"WESTGOLD RESOURCES LTD","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"在创纪录的产量、强劲的现金状况和计划的勇敢分拆后评估Westgold Resources(ASX：WGX)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WGX.AU":1.5,"DCF":1},"content_text":"Westgold Resources (ASX:WGX) has drawn fresh investor attention after reporting record Q2 FY26 gold production of 111,418 ounces, reaffirming its FY26 guidance while also flagging a planned demerger and IPO of Valiant Gold Limited. See our latest analysis for Westgold Resources. Those production numbers and the upcoming Valiant Gold demerger sit against a strong share price backdrop, with a 90 day share price return of 41.44% and a very large three year total shareholder return. The recent 1 day share price decline of 3.45% suggests some investors may be reassessing near term risks after the latest updates. If Westgold’s move has you thinking more broadly about resources and related opportunities, it could be a good moment to check out fast growing stocks with high insider ownership as a source of fresh ideas. After record quarterly production, a strong cash position of A$654 million and a share price that has already delivered very large multi year returns, is Westgold still trading at a discount, or is the market already pricing in future growth? AdvertisementPrice-to-Sales of 5x: Is it justified? On a P/S of 5x at a last close of A$7.27, Westgold screens cheaper than peers on one measure, yet screens expensive against its own estimated fair ratio. P/S compares the company’s market value to its revenue, which can be useful for miners where earnings swing around more than top line sales. For Westgold, the Statements Data suggests the market may be assigning a richer valuation than the SWS fair P/S estimate of 2.8x. This is a level the multiple could move toward if sentiment or expectations cool. Relative to peers though, the contrast is sharp, with Westgold’s 5x P/S sitting well below the peer average of 8.7x and far below the Australian Metals and Mining industry average of 144.8x. That gap highlights how differently investors are pricing revenue across the sector. Explore the SWS fair ratio for Westgold Resources Result: Price-to-Sales of 5x (ABOUT RIGHT) However, the planned Valiant Gold demerger and ongoing share price volatility, including the recent 1 day decline, could both challenge that valuation story. Find out about the key risks to this Westgold Resources narrative. Another View: DCF Points to a Very Different Price While the 5x P/S ratio makes Westgold look roughly in line with its current story, our DCF model paints a very different picture. At a last close of A$7.27 versus an estimated future cash flow value of A$30.23, it flags a very large implied discount. Is the market being cautious, or is the model too optimistic for current conditions? Look into how the SWS DCF model arrives at its fair value. WGX Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Westgold Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 883 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Westgold Resources Narrative If you look at these numbers and reach a different conclusion, or simply prefer to test the assumptions yourself, you can build a custom thesis in just a few minutes with Do it your way. A great starting point for your Westgold Resources research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Westgold has sharpened your focus, do not stop here; broaden your watchlist now so you do not miss the next opportunity that fits your style.  Spot potential value candidates early by checking out these 883 undervalued stocks based on cash flows that line up current prices against projected cash flows. Ride powerful tech trends by scanning these 24 AI penny stocks that link artificial intelligence themes with listed companies worldwide. Capture income focused ideas by reviewing these 13 dividend stocks with yields > 3% that already meet a minimum yield hurdle of 3%.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Westgold Resources might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport,merge","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}