What New Gold Inc.’s (TSE:NGD) 28% Share Price Gain Is Not Telling You
New Gold Inc. (TSE:NGD) shares have continued their recent momentum with a 28% gain in the last month alone. The annual gain comes to 146% following the latest surge, making investors sit up and take notice.
Even after such a large jump in price, you could still be forgiven for feeling indifferent about New Gold’s P/S ratio of 4.1x, since the median price-to-sales (or “P/S”) ratio for the Metals and Mining industry in Canada is also close to 3.5x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
View our latest analysis for New Gold
