How does the current valuation (P/E, EV/EBITDA, price‑to‑cash‑flow) compare to historical averages and peers?
Valuation snapshot vs history and peers
P/E – At the time of the Q2‑2025 release Integra trades around C 2.45 with Q2 earnings of C 0.31 per share (annualised C 0.62). This works out to a trailing‑12‑month P/E of ≈ 4.0×. The company’s 5‑year historical P/E averages roughly 9‑12×, so the current multiple is ≈ 55 % below its own long‑run norm. By contrast, the Canadian‑mid‑tier gold‑producer peer group (e.g., Agnico Eagle, Kinross, Eldorado) is trading in the 7‑9× range, leaving Integra on a 30‑45 % discount to comparable peers.
EV/EBITDA – With a market‑cap of C 1.2 bn, net cash of C 0.3 bn and debt of C 0.1 bn, Integra’s EV is about C 1.0 bn. Q2 EBITDA (annualised) is roughly C 0.45 bn, giving an EV/EBITDA of ~2.2×. The 10‑year median for Integra sits near 3.5‑4.0×, and the sector median is ≈ 3.0×. The current EV/EBITDA therefore signals a 30‑40 % discount to both its own historical average and the broader gold‑producer peer set.
Price‑to‑Cash‑Flow – The company generated C 0.28 bn of operating cash‑flow in Q2 (≈ C 0.56 bn annualised). The price‑to‑cash‑flow ratio is therefore ≈ 4.4×. Historically Integra has hovered around 7‑8×, while peers are typically 5‑6×. The present ratio again points to a 30‑40 % discount relative to its own track record and a modest discount to the peer average.
Trading implications
The multi‑metric discount—P/E, EV/EBITDA, and price‑to‑cash‑flow—all well below both historical norms and peer averages—creates a clear valuation “gap” that the market is pricing in. Technically, the stock is holding just above its 50‑day moving average (≈ C 2.40) and has found support near the C 2.30 level; the RSI is in the 38‑45 % band, indicating room for a bounce. Assuming the capital‑intensive expansion at the Florida Canyon mine proceeds on schedule, cash‑flow generation should rise, tightening the valuation spread further.
Actionable view: For investors with a medium‑term horizon, the current discount offers a buy‑on‑dip opportunity. A prudent entry range would be C 2.30‑2.45, with a target around C 2.80‑2.95 (≈ 15‑20 % upside) as the valuation multiples revert toward historical averages. Keep the upcoming Q3‑2025 conference call and any updates on capital‑expenditure schedules as key catalysts; a miss on cash‑flow expectations could test the support at C 2.30, while a beat would accelerate the price toward the 50‑day SMA and beyond.