Stock fact sheet · data as of
DRDGOLD Limited (DRD): fair value, margin of safety and Wheel Score
Basic Materials · Gold · South Africa · ADR · High Growth
Is DRD undervalued?
At 24.91 (close of 16 Oct 2026), DRD trades 87% below the GLS average fair value of 190.45. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns DRDGOLD Limited the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: Lynch gives 15.05 while 10 Cap gives 761.48. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DRD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for DRD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 78.25 | +214% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 40.28 | +62% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 54.39 | +118% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 15.05 | -40% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 183.83 | +638% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 761.48 | +2957% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 297.25 | +1093% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 250.14 | +904% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 33.36 | +34% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.09 | -140% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 35.00 | +41% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - DRD passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.9 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 32.3%, ROE 32.4%, ROA 23.7% - with debt at 0.00 times equity and a free-cash-flow yield of 6.1%.
The dividend yield is high at 4.18% (payout ratio 18%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 32.3% |
|---|---|---|---|
| GLS Moat | 8.9 / 10 | ROE | 32.4% |
| Debt / equity | 0.00 | ROA | 23.7% |
| Free-cash-flow yield | 6.1% | Payout ratio | 18% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 80: Prime
DRD scores 80 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (13/15), the option premium on offer (17/20) and how easily the stock trades (11/20).
Implied volatility is 71% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (17 of 20) because volatility this high usually comes with a reason. Chain open interest is 2,529 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 179k shares a day on a market cap of $2.2B, with a beta of 0.54 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 87% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 13 / 15 | moat 8.9/10 | |
| Premium | 17 / 20 | implied volatility 71% | |
| Stability | 11 / 20 | 179k shares/day, $2.2B cap, beta 0.54 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for DRD in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Gold
The 12 companies below are the closest to DRDGOLD Limited by market cap within the Gold industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SA Seabridge Gold Inc. | 25.32 | 3.28 | -672% | 43Weak | $2.7B |
| HYMC Hycroft Mining Holding Corporation | 17.42 | 4.15 | -319% | 34Weak | $1.6B |
| AAUC Allied Gold Corporation | 20.55 | 37.45 | +45% | 39No options | $2.9B |
| NG NovaGold Resources Inc. | 6.56 | - | - | 45Weak | $2.9B |
| FSM Fortuna Mining Corp. | 10.54 | 33.78 | +69% | 84Prime | $3.1B |
| IAUX i-80 Gold Corp | 1.53 | - | - | 36No options | $1.3B |
| ARIS Aris Mining Corporation | 17.36 | 36.73 | +53% | 82Prime | $3.6B |
| CGAU Centerra Gold Inc. | 21.97 | 48.60 | +55% | 81Prime | $4.3B |
| CNL Collective Mining Ltd. | 11.25 | 1.50 | -650% | 16No options | $1.0B |
| RBTK Zhen Ding Resources Inc. | 7.98 | 0.0120 | -66467% | 19No options | $886M |
| OGG Osisko Gold Group Inc. | 2.65 | - | - | 45Weak | $811M |
| MAKO Mako Mining Corp. | 8.94 | 19.18 | +53% | 39No options | $783M |
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Start free See the Sunday ScanQuestions about DRD
Is DRD undervalued right now?
By the GLS models, yes: at 24.91 the stock is 87% below the average fair value of 190.45 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DRD and what does it mean?
DRD scores 80 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DRD?
190.45 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does DRDGOLD Limited report earnings next?
No upcoming earnings date is recorded for DRD in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does DRD have listed options, and how liquid are they?
Yes. The nightly snapshot found 124 listed contracts with 2,529 open interest across all expiries and implied volatility of 71% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.