A Look At Wesdome Gold Mines (TSX:WDO) Valuation After Record 2025 Output And Expanded 2026 Exploration Plans

Wesdome Gold Mines (TSX:WDO) is back on investors’ radars after confirming record 2025 gold production, strong free cash flow, and setting 2026 guidance of 180,000 to 205,000 ounces, alongside a record $55 million exploration budget.

See our latest analysis for Wesdome Gold Mines.

Those production records, a larger 2026 exploration program and a COO transition have arrived alongside a 30 day share price return of 14.24% and a 1 year total shareholder return of 104.63%, suggesting momentum has been strong over both shorter and longer horizons.

If Wesdome’s recent move has you thinking about where else growth could come from in materials and beyond, it might be worth scanning fast growing stocks with high insider ownership as your next stop.

With the shares up sharply over 1 year, record 2025 production in the books and a major 2026 drill program ahead, the key question now is whether Wesdome still trades at a discount or if the market already reflects that growth.

Price-to-Earnings of 14x: Is It Justified?

With Wesdome Gold Mines last closing at CA$26.95, the current 14x P/E suggests the market price sits below several value markers flagged in the data.

The P/E ratio tells you how much investors are paying today for each dollar of current earnings, which is particularly relevant for a profitable producer like Wesdome. Here, the company is flagged as good value on several fronts, including trading at 61.5% below one internal fair value estimate, and as undervalued relative to an estimate of future cash flow value of CA$70.04 per share.

The 14x P/E also compares against an estimated fair P/E of 17.6x, suggesting potential for the multiple to move closer to a level implied by earnings quality and return profile. It additionally sits below both peer and industry averages, with the peer group at 31x and the wider Canadian Metals and Mining industry at 25.5x. This represents a notable relative discount for a company flagged as having high quality earnings and a 34.8% return on equity.

Explore the SWS fair ratio for Wesdome Gold Mines

Result: Price-to-Earnings of 14x (UNDERVALUED)

However, a 14x P/E can quickly look less attractive if production, exploration results or gold prices disappoint, especially after a 1 year total return above 100%.

Find out about the key risks to this Wesdome Gold Mines narrative.

Another View: Cash Flows Paint an Even Cheaper Picture

While the 14x P/E already points to value, our DCF model goes further and suggests Wesdome shares trade at a very large discount to an estimated future cash flow value of CA$70.04 per share. If earnings stay resilient, is the market being too cautious on the cash flow story?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Wesdome Gold Mines 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 872 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 Wesdome Gold Mines Narrative

If you see the numbers differently, or simply prefer to test your own assumptions against the data, you can build a custom Wesdome view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Wesdome Gold Mines.

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If Wesdome is on your radar, do not stop there. The Screener can help you quickly spot other opportunities that fit your style and risk appetite.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
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
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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