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 3th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for GOLD, they are:
The company's compound free cash flow growth rate over the past 2.98 years comes in at -0.31%; that's greater than only 5.12% of US stocks we're applying DCF forecasting to.
Barrick Gold Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.36. This coverage rate is greater than that of merely 20.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Basic Materials), Barrick Gold Corp has a reliance on debt greater than just 21.11% of them.
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 TGLS, CMCL, CUO, GCP, and LOMA.