A strong performer from today's afternoon trading session is McEwen Mining, whose shares rose 1.6% to $8.74 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver deposits in the United States, Canada, Mexico, and Argentina. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 10.03 and an average price to book (P/B) ratio of 2.08. In contrast, McEwen Mining has a trailing 12 month P/E ratio of -4.9 and a P/B ratio of 1.3.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
McEwen Mining has moved 31.1% over the last year compared to -4.2% for the S&P 500 — a difference of 35.0%. McEwen Mining has a 52 week high of $10.0 and a 52 week low of $2.81.
