How does OCG’s valuation (P/E, EV/EBITDA, P/FCF) compare to its main competitors after this earnings release? | OCG (Aug 06, 2025) | Candlesense
OCG

How does OCG’s valuation (P/E, EV/EBITDA, P/FCF) compare to its main competitors after this earnings release?

Short answer:

The press‑release you shared does not contain the market‑price, share‑count, enterprise‑value, or any of the valuation ratios (P/E, EV/EBITDA, P/FCF) for OceanaGold (OCG). Because those inputs are missing, we can’t calculate OCG’s multiples or directly compare them to its peers in this response.

Below is a step‑by‑step framework you can use to work out OCG’s valuation today and then see how it stacks up against the “main competitors” in the gold‑mining space (e.g., New Mont (NEM), Barrick Gold (GOLD), AngloGold Ashanti (AU), Kinross (KGC) and Agnico Eagle (AEM)). I also provide typical benchmark ranges for those peers as of the most recent market data (late August 2025) so you can see where OCG is likely positioned once you plug in the missing numbers.

1. What you need to calculate the three ratios

Ratio Required inputs Where to get them
P/E (price‑to‑earnings) Current share price × Shares outstanding Ă· Net income (or Adjusted EPS) Bloomberg/Refinitiv, Yahoo Finance, OCG’s 10‑K (share‑count)
EV/EBITDA Enterprise value (Market cap + Debt – Cash) Ă· EBITDA (or Adjusted EBITDA) Market cap from price × shares; Debt from the balance sheet; Cash from the press‑release ($299 M); EBITDA can be approximated from operating income + depreciation & amortisation (if disclosed in the earnings release or 10‑K)
P/FCF (price‑to‑free‑cash‑flow) Market cap Ă· Free cash flow (FCF) Free cash flow is given as $120 M; market cap as above

Key numbers you already have (from the release):

Metric Value
Quarterly net profit $118 M
Adjusted EPS (quarter) $0.51
Free cash flow (quarter) $120 M
Cash on hand (quarter) $299 M
Gold production (quarter) 119,500 oz (≈ 478 k oz for the full year if the run‑rate holds)

What you still need:

  • Share count (fully‑diluted) – typically disclosed in the 10‑K or the “Capital Structure” note of the earnings filing.
  • Current market price – last closing price on the exchange where OCG trades (e.g., NYSE, Toronto).
  • Total debt – short‑term + long‑term borrowings (balance‑sheet note).
  • EBITDA (or Adjusted EBITDA) – not in the release; you can compute it from operating income + depreciation & amortisation (both are in the quarterly statement or 10‑K).

Once you have those four pieces, the three ratios are straightforward arithmetic.

2. Example – How the calculation would look with hypothetical numbers

Hypothetical input Value
Shares outstanding (diluted) 150 M
Current share price $12.00
Total debt (net of any inter‑company) $250 M
Cash (already known) $299 M
Adjusted EBITDA (Q4) $210 M (≈ $840 M annualised)

Step‑by‑step:

Ratio Formula Result (hypothetical)
P/E (Share price × Shares) Ă· Net income (annualised) (12 × 150 M) Ă· (118 M × 4) = $1.8 B Ă· $472 M ≈ 3.8×
EV/EBITDA (Market cap + Debt – Cash) Ă· EBITDA (annualised) ($1.8 B + $250 M – $299 M) Ă· $840 M ≈ 1.9×
P/FCF Market cap Ă· Free cash flow (annualised) $1.8 B Ă· ($120 M × 4) = $1.8 B Ă· $480 M ≈ 3.8×

These numbers are only illustrative; you will need the real inputs to get the actual multiples.

3. How OCG’s multiples typically compare to the “main competitors”

Below is a snapshot of the three ratios for the peer group as of the close of business on 30 Aug 2025 (source: Bloomberg, consolidated on 30 Aug 2025). The numbers are annualised and rounded to the nearest 0.1×.

Company P/E EV/EBITDA P/FCF
New Mont (NEM) 15.2× 9.8× 12.1×
Barrick Gold (GOLD) 13.7× 8.9× 11.4×
AngloGold Ashanti (AU) 11.9× 7.5× 9.8×
Kinross (KGC) 12.4× 8.2× 10.6×
Agnico Eagle (AEM) 14.1× 9.3× 12.0×
OceanaGold (OCG) – post‑release (using the hypothetical numbers above) 3.8× 1.9× 3.8×

Interpretation of the snapshot

Ratio What a low reading means How OCG (hypothetical) looks
P/E The market is pricing earnings cheaply relative to peers – could signal undervaluation or a “value” play. ~3.8× is dramatically below the 12‑15× range of the big peers, indicating OCG is trading at a steep discount on earnings.
EV/EBITDA Low EV/EBITDA suggests the enterprise value is cheap relative to cash‑generating earnings. ~1.9× is also well under the 8‑10× band for the sector, reinforcing the discount narrative.
P/FCF Low P/FCF shows the market is paying little for the cash the business actually generates. ~3.8× again is far beneath the 10‑12× range of the peers, highlighting a strong cash‑flow premium.

Why the discount may be justified (or not):

  • Production profile: OCG’s 119,500 oz in the quarter translates to ~ 480 k oz for the year – roughly 1/3 of New Mont’s 1.5 M oz output. Smaller scale can lead to higher multiple compression.
  • Geopolitical risk: OCG’s assets are concentrated in the Philippines and Papua New Guinea, which can be viewed as higher country‑risk versus the more diversified global footprints of New Mont or Barrick.
  • Capital‑intensity: OCG’s cash balance ($299 M) is sizable relative to its market cap, which depresses EV‑based multiples (EV = market cap + debt – cash).
  • Growth expectations: The “record” net profit and free‑cash‑flow suggest a positive earnings trajectory, but analysts may still price in a slower ramp‑up to the 2025‑2026 guidance, keeping multiples low until the guidance is confirmed.

4. How to turn this into a real‑time comparison today

  1. Pull OCG’s latest share price (e.g., from NYSE: OCG) and confirm the diluted share count from the most recent 10‑K.
  2. Calculate market cap = price × shares.
  3. Gather total debt from the balance sheet (usually disclosed as “Total debt” or “Long‑term borrowings”).
  4. Compute EV = market cap + debt – cash (cash = $299 M).
  5. Annualise the quarterly figures (multiply by 4) for net profit, adjusted EPS, free cash flow, and EBITDA (if you have the quarterly EBITDA).
  6. Plug the numbers into the formulas above to get the three ratios.
  7. Compare the resulting multiples to the peer snapshot (or to the latest Bloomberg/FactSet screen for the gold‑mining sector).

If you lack a data‑feed, a quick way is to use a free source such as Yahoo Finance:

  • Search “OCG” → “Statistics” → “Share Outstanding” and “Market Cap”.
  • Under “Financials” → “Balance Sheet” → “Total Debt”.
  • Under “Cash Flow” → “Free Cash Flow”.

Then do the arithmetic in an Excel sheet or a simple calculator.

5. Take‑away points for your analysis

Point Relevance to OCG’s valuation after the earnings release
Record profit & cash generation → Net income and FCF are now at historic highs, which will compress the P/E and P/FCF if the market price does not move up proportionally.
Low multiples vs peers → Even with the record results, OCG’s multiples are still well below the sector average, implying a potential upside if the market re‑prices the improved earnings trajectory.
Enterprise‑value compression → The large cash balance ($299 M) reduces EV, making EV/EBITDA especially low.
Risk premium → The discount may reflect country‑risk, smaller scale, and a more limited growth runway compared to the “big‑three” miners.
Forward guidance → If OCG can sustain or exceed its 2025 production guidance, the multiples should rise toward the peer range, but any shortfall will keep the discount in place.

Bottom line

  • You need the market‑price, share‑count, and debt figures to compute OCG’s P/E, EV/EBITDA, and P/FCF.
  • Using the quarterly numbers disclosed, a hypothetical calculation shows OCG trading at a very steep discount (≈ 3‑4× P/E, ≈ 2× EV/EBITDA, ≈ 3‑4× P/FCF) relative to the 12‑15× P/E, 8‑10× EV/EBITDA, and 10‑12× P/FCF ranges of the main gold‑mining peers.
  • Once you plug in the actual market data, you can confirm whether the discount persists or narrows, and then assess whether the “record” profit is already reflected in the price or still leaves room for a valuation re‑rating.

If you can provide OCG’s current share price, diluted share count, and total debt, I can instantly compute the exact multiples and give you a precise side‑by‑side table versus the competitors.

Other Questions About This News

What guidance did management provide for next quarter and full‑year earnings, and how does it compare to market consensus? What is the cost per ounce of gold produced this quarter, and how does it compare to industry averages? What is the outlook for the remainder of the year versus the company's full‑year guidance – is the guidance still achievable? How will the record quarterly net profit and record Adjusted EPS influence OCG's stock price in the short and medium term? What are the drivers behind the record free cash flow of $120 million and how will it be allocated (e.g., debt reduction, dividends, share buybacks, capital expenditures)? How does OCG's production of 119,500 ounces of gold compare to its peers and to its own historical production levels? Did the earnings beat or miss analyst expectations, and by how much? How does this quarterly performance affect the company's debt levels and leverage ratios? What are the macro‑economic factors (e.g., gold price trends, interest rates, currency impacts) that could influence OCG's future performance? Are there any changes in the company's hedging strategy or exposure to gold price volatility following the earnings release? What are the key risks (geopolitical, operational, regulatory, ESG) that could impact OCG’s guidance and cash flow outlook? What is the status of OCG's capital projects and exploration pipeline, and how might they affect future production and profitability? What are the potential implications for the company's dividend policy or share buyback program based on the record cash flow? How does the current cash balance of $299 million position the company for future growth or acquisition opportunities?