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Can Yamana Gold Narrow Its Valuation Gap Versus Peers?

Annie Gilroy
Can Yamana Gold Narrow Its Valuation Gap Versus Peers?

Yamana Gold’s (AUY) valuation multiple has varied widely between 4.3x and 9.8x over the last five years. Valuation multiples signify what investors are willing to pay for a stock based on analyst estimates. Yamana is currently trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 5.6x. This multiple implies a discount of 13.6% to its intermediate peers (GDXJ), including Agnico Eagle Mines (AEM), Eldorado Gold (EGO), IAMGOLD (IAG), and New Gold (NGD).