ZA:ALLIED NEVADA GOLD IS AMONG THE COMPANIES IN THE GOLD INDUSTRY WITH A RELATIVELY HIGH P/E RATIO (ANV, RGLD, GG, KGC, ABX)
Jun 07, 2011 (SmarTrend(R) News Watch via COMTEX) -- Below are the five companies in the Gold industry with the highest Price to Earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.
Allied Nevada Gold (AMEX:ANV) has the highest with a P/E of 90.8x; Royal Gold (NASDAQ:RGLD) is next with a P/E of 53.3x; and Goldcorp (NYSE:GG) has the next highest with a P/E of 29.0x.
Kinross Gold (NYSE:KGC) follows with a P/E of 26.5x and Barrick Gold (NYSE:ABX) rounds out the group with a P/E of 13.1x.
SmarTrend currently has shares of Barrick Gold in an Downtrend and issued the Downtrend alert on May 03, 2011 at $49.02. The stock has fallen 7.2% since the Downtrend alert was issued.
