--- title: "Is DRDGOLD Still a Smart Pick After Stunning 179.9% Price Surge in 2025?" description: "DRDGOLD has experienced a remarkable 179.9% price surge over the past year, with a 218.8% increase year-to-date. The stock's recent performance, including a 25.6% rise in the last month, reflects rene" type: "news" locale: "en" url: "https://longbridge.com/en/news/260759094.md" published_at: "2025-10-12T02:20:32.000Z" --- # Is DRDGOLD Still a Smart Pick After Stunning 179.9% Price Surge in 2025? > DRDGOLD has experienced a remarkable 179.9% price surge over the past year, with a 218.8% increase year-to-date. The stock's recent performance, including a 25.6% rise in the last month, reflects renewed interest in gold amid global market uncertainties. Analysts suggest DRDGOLD is undervalued, with a Discounted Cash Flow analysis indicating a fair value of $61.66, implying a 53.4% undervaluation. Additionally, its Price-to-Earnings ratio of 19.33x is below industry averages, further supporting the view that the stock is a good investment opportunity. Trying to decide what to do with your DRDGOLD stock or thinking about jumping in? You are not alone. Over the past year, DRDGOLD’s price has been anything but boring, rising a stunning 179.9% over the last 12 months and delivering a massive 218.8% year-to-date. In just the last month, the stock has added another 25.6%, leaving most of the sector in the dust. Even in the last week, it edged up a solid 0.5%, showing resilience as investors weigh shifting signals in the gold market. Part of this story is bigger picture market sentiment. Renewed interest in gold as a safe haven, continued uncertainty in global markets, and steadier costs on the production front are bringing in new buyers and ramping up excitement. With price gains like these, you are right to wonder: is DRDGOLD still a good value, or are we entering overbought territory? Our initial look at the company’s valuation shows a strong value score of 4 out of 6, meaning DRDGOLD is undervalued in most of the key checks we analyze. Whether you are considering an entry point or holding out for another climb, understanding what is behind this score is essential. Let’s break down the different approaches analysts use to value DRDGOLD. Stick around to the end, because there is an even clearer way to put these numbers in perspective that you will not want to miss. DRDGOLD delivered 179.9% returns over the last year. See how this stacks up to the rest of the Metals and Mining industry. ### Approach 1: DRDGOLD Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model is a popular tool that estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s value. This approach helps investors look beyond current market noise and focus on DRDGOLD's true earning potential over time. For DRDGOLD, the latest reported Free Cash Flow (FCF) stands at ZAR 946.2 Million. Analyst projections show this number growing quickly, and by 2028, the expected annual FCF reaches ZAR 5.90 Billion. Looking further out, extrapolated estimates suggest FCF could rise even higher by 2035. All these projections are based on cash flows denominated in ZAR, the company’s reporting currency. The results of this DCF analysis show that DRDGOLD’s fair value per share is estimated at $61.66. Compared to its current price, the DCF model implies the stock is 53.4% undervalued. This indicates that the market price is considerably below what the company’s long-term cash flows suggest it is worth. **Result: UNDERVALUED** Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for DRDGOLD. Our Discounted Cash Flow (DCF) analysis suggests DRDGOLD is undervalued by 53.4%. Track this in your watchlist or portfolio, or discover more undervalued stocks. ### Approach 2: DRDGOLD Price vs Earnings (PE) The Price-to-Earnings (PE) ratio is a go-to metric for valuing profitable companies because it ties a company’s current share price to how much net profit it generates. Since DRDGOLD is solidly in the black, the PE ratio gives investors a direct sense of what they are paying for each dollar of earnings, which is a key decision point when comparing investment opportunities. It’s important to know that what counts as a "fair" PE ratio is shaped by expectations for future growth and the risks a business faces. High-growth companies typically command a higher PE, whereas a higher-risk or slower-growing stock might trade at a discount. That is why comparing DRDGOLD to the right benchmarks is crucial. Currently, DRDGOLD’s PE ratio is 19.33x. For context, the Metals and Mining industry average stands at 24.58x and the average for DRDGOLD’s selected peers is even higher at 31.21x. On the surface, this suggests DRDGOLD is trading at a discount to both its sector and competitor group. Instead of relying solely on industry or peer averages, it is more insightful to look at Simply Wall St’s proprietary “Fair Ratio.” This takes into account not just broad metrics, but also company-specific factors like DRDGOLD’s earnings growth outlook, profit margins, risks unique to its business, and even its market cap. This approach offers a more complete and nuanced picture of valuation that goes beyond surface-level comparisons. Comparing DRDGOLD’s actual PE of 19.33x to its Fair Ratio shows a notable gap. Since the difference is clearly more than 0.10, it reinforces that based on this approach, the stock is undervalued against what its fundamentals would justify. **Result: UNDERVALUED** PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. ### Upgrade Your Decision Making: Choose your DRDGOLD Narrative Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. Narratives are a powerful, user-friendly tool that lets you craft your own story behind the numbers by combining your assumptions about DRDGOLD’s fair value, future earnings, and margins with real-world insights about the business. Think of a Narrative as a bridge that connects the company’s business outlook to a financial forecast, and then to a calculated fair value. Instead of viewing stocks as just numbers on a screen, Narratives allow you to bring your perspective to the table, making valuation both personal and meaningful. On Simply Wall St's platform, millions of investors use Narratives on the Community page to instantly visualize how their forecasts stack up against the current market price. This helps them decide not only if DRDGOLD is undervalued or overvalued, but also if it is the right time to buy or sell. What makes Narratives truly dynamic is their ability to update automatically whenever there is relevant news or earnings releases, so your view always stays current. - One investor may set a fair value for DRDGOLD at $75 amid bullish gold price forecasts - Another may opt for $40, factoring in higher risks and lower future margins Do you think there's more to the story for DRDGOLD? Create your own Narrative to let the Community know! *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.* ### Related Stocks - [DRD.US - DRDGOLD](https://longbridge.com/en/quote/DRD.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | DRDGOLD Limited 半年度每股淨收益幾乎翻倍，達到 ZAR2.17–ZAR2.28 | DRDGOLD 有限公司報告了截至 2025 年 12 月 31 日的六個月內每股收益（EPS）顯著增長，EPS 範圍為南非蘭特 2.17 至 2.28，同比上漲 93% 至超過 100%。集團收入達到南非蘭特 50.5 億，同比增長 33 | [Link](https://longbridge.com/en/news/275272037.md) | | DRDGOLD（DRD）的行業順風是彰顯了其持久的實力，還是在掩蓋公司特有的挑戰？ | DRDGOLD 最近的表現引起了關注，因為其他金礦公司的業績更強，暗示業務結果有所改善。該公司在金礦行業的有利定位被視為對投資者的潛在優勢。儘管最近股價上漲了 7% 並且經紀人共識積極，但仍然面臨挑戰，包括對黃金價格的暴露和運營風險。對 D | [Link](https://longbridge.com/en/news/275802844.md) | | DRDGOLD 在 ERGO 運營處完成工資談判 | DRDGOLD 有限公司：JSE：DRD - DRDGOLD 在 ERGO 運營結束工資談判 DRDGOLD 有限公司 - 協議包括 6%-7.5% 的年度工資增長 DRDGOLD 有限公司 - 在 ERGO 最終確定五年工資協議 | [Link](https://longbridge.com/en/news/274491451.md) | | DRDGOLD 表示，財年的指導目標與單位成本預計將保持在預期範圍內 | DRDGOLD 有限公司：JSE：DRD - 截至 2025 年 12 月 31 日的六個月交易聲明和交易更新 DRDGOLD 有限公司展望：上半年每股收益預計在 217.5 美分至 228.7 美分之間 DRDGOLD 有限公司： | [Link](https://longbridge.com/en/news/275278229.md) | | DRDGOLD 專注於尾礦的清潔黃金戰略如何改變了其投資故事 | DRDGOLD 因其在南非專注於尾礦的黃金生產策略而受到關注，強調在市場波動中保持穩定的生產。該公司的模式提供了對黃金價格的槓桿暴露，同時促進環境可持續性。儘管近期股票波動，管理層仍維持生產指引，強調由於特定國家的風險，該投資的投機性質。分 | [Link](https://longbridge.com/en/news/271961457.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.