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LUG.TO (LUG) Fair Value & Analysis

Basic Materials · CA · Market cap C$25.2B (≈ $18.2B) · ISIN CA5503711080

What is LUG.TO really worth?

LT LUG.TO LUG · TO
PriceC$101.58
Fair ValueC$74.07
Upside−27.1%
Quality85/100

A strong business, but trading 37% above our fair value of C$74.07.

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Strengths

Highly profitable · 46.3% net margin
Low debt · generates free cash flow
Wide moat 90/100

Risks

!Mixed Growth (revenue 5y +38.3 %/yr)
!Mixed vs. peers (7/14)
!The models disagree: range C$55.98 to C$157.67
!Weak on future: 28 out of 100

For context

·3.58% dividend yield
Evidence: High Range C$55.98 – C$157.67

Fair value as of: Aug 31, 2026

From 26 valuation models · updated 5 days ago

Fair value updated Aug 31, 2026, revised from C$73.79 to C$74.07 (+0.4%) since Aug 28, 2026. Share price +24.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 85/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The model range is unusually wide (C$55.98 to C$157.67). The outcome hinges heavily on assumptions, so read the point estimate with caution.

Price vs Fair Value (5 years)

C$117.66 C$6.21 Fair Value C$74.07 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range C$6.21 – C$117.66 · fair‑value band C$55.98 – C$157.67 · the C$101.58 price screens above the C$74.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

Full chart & analysis →

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Analysis

LUG.TO (LUG) currently trades at C$101.58, while our model-based Fair Value estimate is C$74.07, implying the stock looks roughly 37.1% overvalued today. The Quality Score stands at 85/100 (high quality), in the Basic Materials sector. Bull case: the Growth Earnings group reads highest at a median of C$143.52 per share, and 10 of the 26 models we run sit above the C$101.58 price. Bear case: the Multiples group reads lowest at C$16.89, and 16 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, LUG.TO generated revenue of C$2.0B at a net margin of 45.7%. Revenue grew 59.2% year over year. It earns a return on equity of 68.5%. The balance sheet holds a net cash position of C$409M. Fundamentals as of Aug 31, 2026

Our scenario range runs from C$55.98 (bear case) to C$157.67 (bull case); at C$101.58, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 77% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −12% fair-value upside, at −27%, LUG screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly C$1.14 per share, which is 1.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV C$31.69 C$36.84 C$41.35 74
FCF DCF C$67.93 C$106.43 C$229.03 73
Growth DCF C$63.94 C$126.12 C$228.02 72
All 26 models by family
DCF Models
FCF DCF C$67.93 C$106.43 C$229.03 73
Owner Earnings C$56.36 C$127.25 C$276.05 68
5Y Revenue Exit C$25.55 C$35.34 C$55.14 70
5Y EBITDA Exit C$48.67 C$82.09 C$147.50 70
5Y P/E Exit C$51.27 C$108.40 C$185.37 66
10Y Revenue Exit C$37.91 C$63.02 C$72.96 66
10Y EBITDA Exit C$55.14 C$112.81 C$210.47 63
10Y P/E Exit C$57.03 C$118.41 C$217.25 59
Earnings-Based
Graham-Dodd C$22.66 C$158.06 C$221.81 61
Lynch FV C$81.66 C$116.65 C$151.65 59
PEG = 1.0 C$81.66 C$116.65 C$151.65 55
EPV C$31.69 C$36.84 C$41.35 74
Dividend Discount
Gordon GGM C$25.64 C$53.32 C$84.59 64
DDM Multi-Stage C$25.64 C$44.96 C$55.96 64
Multiples
P/E Multiple C$42.50 C$56.66 C$70.83 63
P/S Multiple C$8.44 C$11.25 C$14.07 58
P/B Multiple C$12.67 C$16.89 C$21.11 55
EV/EBIT C$49.50 C$65.73 C$81.97 66
EV/EBITDA C$39.85 C$52.87 C$65.88 67
EV/Revenue C$8.67 C$12.05 C$15.43 54
Asset-Based
NCAV (Graham) C$2.82 C$3.77 C$5.63 54
Growth DCF
Growth DCF C$63.94 C$126.12 C$228.02 72
Rev-Margin DCF C$27.62 C$40.45 C$65.43 69
Economic Profit
Residual Income C$20.95 C$24.64 C$140.10 61
ROIC Compounder C$37.96 C$53.58 C$73.28 69
Growth Earnings
Growth-Adj P/E C$100.46 C$143.52 C$186.57 65

Widest divergence: Growth Earnings (C$143.52) versus Asset-Based (C$3.77). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 19.5
P/S ratio 8.65 P/E × margin
EPS (TTM) C$5.22 price ÷ EPS = P/E 19.5
Dividend yield 3.6% payout 69.7%
Net margin 44.4% FY2025
Return on equity 68.5% TTM
More key figures
Profitability
Return on assets (EBIT) 40.6% avg 5y
Operating margin 68.9% TTM
Growth
Revenue (TTM) C$2.0B TTM
Revenue growth (YoY) +59.2% 3y avg +30.5%
EPS growth (YoY) +12.2%
Balance sheet & cash flow
Free cash flow C$965M FY2025
Net cash C$409M FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 85/100

Of which business quality 82 · Market factors (momentum, volatility) 44

Profitability 95
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 15
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 62
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Lundin Gold Inc., together with its subsidiaries, develops and operates its mineral concessions in Ecuador. It explores for gold and silver deposits. The company holds interests in 27 metallic mineral concessions and 3 construction material concessions covering an area of approximately 65,000 hectares located in Ecuador.

Full company description

Lundin Gold Inc., together with its subsidiaries, develops and operates its mineral concessions in Ecuador. It explores for gold and silver deposits. The company holds interests in 27 metallic mineral concessions and 3 construction material concessions covering an area of approximately 65,000 hectares located in Ecuador. It also holds a 100% interest in the Fruta del Norte gold project that comprising seven concessions covering an area of approximately 5,566 hectares located in the Cordillera del Cóndor region of southeast Ecuador. The company was formerly known as Fortress Minerals Corp. and changed its name to Lundin Gold Inc. in December 2014. Lundin Gold Inc. was incorporated in 1986 and is headquartered in Vancouver, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LUG.TO reported revenue of $1.8B in FY2025 versus $733M in FY2021, a compound +25.4%/yr. Reported net income was $806M in FY2025, compounding +38.1%/yr from FY2021.

Growth Quality 88/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
C$1.8B
Latest YoY
+52.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+30.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+38.3%
Avg. revenue growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+52.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+32.2% (28.6 + 3.6)
Revenue +25.4%/yr
FY21 $733M
FY22 $816M
FY23 $903M
FY24 $1.2B
FY25 $1.8B
Net income +38.1%/yr
FY21 $221M
FY22 $73.6M
FY23 $179M
FY24 $426M
FY25 $806M

LUG screens 37% overvalued. Compare with Newmont Corporation →

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Cite: Fair Value Calculator (2026). "LUG.TO Fair Value". https://www.fairvalue-calculator.com/stock/LUG

Peer Group

Gold · 245 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 85 · Top 25%
Fair Value upside −27% · Above median
Return on equity (TTM) 101% · Top 25%
Return on assets 51% · Top 25%
Net margin (TTM) 46% · Top 25%
Operating margin (TTM) 66% · Top 25%
Revenue growth 6% · Below median
Dividend yield (TTM) 3.6% · Top 25%
Debt / equity 0.16× · Higher than 75% of peers

Valuation Multiples vs Gold median · lower = cheaper

P/E (TTM) 19.5× · Pricier than 75% of peers
P/B 13.38× · Pricier than 75% of peers
P/S (TTM) 9.03× · Pricier than 75% of peers
P/FCF 18.9× · Pricier than median
EV/EBITDA 12.5× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE28 · sector 100
PAST100 · sector 2
HEALTH92 · sector 98
DIVIDEND72 · sector 20

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Gold stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Newmont Corporation NEMCL $128.00 $112.82 −12%
Zijin Mining Group 601899 ¥32.21 ¥39.42 +22%
Agnico Eagle Mines Limited AEM C$268.76 C$213.40 −21%
Barrick Mining Corporation B $41.23 $50.66 +23%
Franco-Nevada Corporation FNV $271.31 $96.63 −64%
Wheaton Precious Metals Corp WPM C$201.40 C$56.05 −72%
AngloGold Ashanti plc AU $97.92 $88.63 −9%
Kinross Gold Corporation KGC $32.51 $34.62 +6%
Royal Gold, Inc RGLD $262.85 $93.56 −64%
Northern Star Resources Limited NST A$23.19 A$15.98 −31%

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Frequently asked questions

Is LUG.TO (LUG) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of C$74.07 versus a price of C$101.58, about −27% upside (overvalued).
What is the fair value of LUG?
Our model-based fair value for LUG.TO is C$74.07 (as of Aug 31, 2026), built from audited fundamentals. The current price: C$101.58.
What is the quality score of LUG?
LUG.TO has a Quality Score of 85/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LUG.TO (LUG)?
LUG.TO reported trailing-twelve-month revenue of about C$2.0B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of LUG?
The net profit margin of LUG.TO is about 45.7%, meaning it keeps roughly 45.7% of revenue as net income. Based on the latest reported figures.
Does LUG.TO pay a dividend?
LUG.TO currently shows a dividend yield of about 3.58% relative to its recent price (as of Aug 31, 2026).
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