Your EPS calculation is going to miss since it does not include interest, taxes or d&a (plus miners will very rarely trade on 15x eps).
If you are going to use a multiple pick EV/EBITDA or EV/FCF.
RSG trades on forward multiple of about 2.5x EV/EBITDA when most peers trade on 5x. A $1 share price would close this valuation gap but there are a few valid reasons for a discount (such as sovereign risk and cost of production). This flipside to this is that RSG is more levered to changes in USD gold (a $100 increase in gold boosts margin by 33%).
I think its a great buy with gold above $1200 USD.
Upside, page-2
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Last
66.0¢ |
Change
-0.015(2.22%) |
Mkt cap ! $1.405B | |||
| Open | High | Low | Value | Volume |
| 66.0¢ | 66.5¢ | 64.5¢ | $6.512M | 9.931M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 131650 | 65.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 66.0¢ | 397181 | 5 |
View Market Depth
| Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
| RSG (ASX) Chart |