Barrick Gold Corporation produces and sells gold and copper. The company is also involved in exploration and mine development activities in the United States, Canada, Australia, Argentina, Chile, Peru, the Dominican Republic, Papua New Guinea, Tanzania, Zambia, and Saudi Arabia. The company was founded in 1983 and is based in Toronto, Canada.
GOLD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Barrick Gold Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Barrick Gold Corp ranked in the 17th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 79.67%. As for the metrics that stood out in our discounted cash flow analysis of Barrick Gold Corp, consider:
The compound growth rate in the free cash flow of Barrick Gold Corp over the past 4 years is 0.01%; that's better than only 24.28% of cash flow producing equities in the Basic Materials sector, where it is classified.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately only 24.55% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
GOLD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 35.34% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Barrick Gold Corp? See UFS, WPM, AA, CENX, and SQM.
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