AngloGold Ashanti plc

NYSE:AU Stock Report

Market Cap: US$10.6b

AngloGold Ashanti Valuation

Is AU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AU ($25.15) is trading below our estimate of fair value ($70.4)

Significantly Below Fair Value: AU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AU?

Key metric: As AU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AU. This is calculated by dividing AU's market cap by their current earnings.
What is AU's PE Ratio?
PE Ratio18.8x
EarningsUS$562.00m
Market CapUS$10.58b

Price to Earnings Ratio vs Peers

How does AU's PE Ratio compare to its peers?

The above table shows the PE ratio for AU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
RGLD Royal Gold
33.8xn/aUS$9.7b
BVN Compañía de Minas BuenaventuraA
8.6x3.3%US$3.2b
AEM Agnico Eagle Mines
40.7x9.9%US$41.2b
DRD DRDGOLD
11.6xn/aUS$854.6m
AU AngloGold Ashanti
18.8x36.5%US$10.6b

Price-To-Earnings vs Peers: AU is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does AU's PE Ratio compare vs other companies in the US Metals and Mining Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.6xn/aUS$5.46m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
ZCRM.F Zincore Metals
0.5xn/aUS$852.33k
AU 18.8xIndustry Avg. 19.1xNo. of Companies5PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AU is good value based on its Price-To-Earnings Ratio (18.8x) compared to the US Metals and Mining industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is AU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio34.6x

Price-To-Earnings vs Fair Ratio: AU is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$25.15
US$33.50
+33.2%
10.4%US$37.00US$30.00n/a2
Nov ’25US$27.29
US$33.50
+22.8%
10.4%US$37.00US$30.00n/a2
Oct ’25US$27.17
US$31.00
+14.1%
2.6%US$32.00US$30.00n/a3
Sep ’25US$29.67
US$28.40
-4.3%
17.5%US$34.00US$20.00n/a5
Aug ’25US$27.74
US$26.40
-4.8%
14.7%US$32.00US$20.00n/a5
Jul ’25US$25.11
US$26.60
+5.9%
15.7%US$33.00US$20.00n/a5
Jun ’25US$24.19
US$26.20
+8.3%
15.7%US$33.00US$20.00n/a5
May ’25US$23.46
US$23.20
-1.1%
21.0%US$31.00US$17.00n/a5
Apr ’25US$22.17
US$21.60
-2.6%
13.9%US$26.00US$17.00n/a5
Mar ’25US$19.50
US$20.90
+7.2%
13.1%US$25.00US$17.00n/a6
Feb ’25US$18.70
US$21.40
+14.4%
11.6%US$25.00US$18.40n/a6
Jan ’25US$18.69
US$21.57
+15.4%
15.0%US$25.00US$17.00n/a6
Dec ’24US$20.05
US$21.00
+4.7%
14.0%US$25.00US$17.00n/a6
Nov ’24US$17.36
US$21.83
+25.8%
14.3%US$27.00US$17.00US$27.296
Oct ’24US$15.80
US$22.00
+39.2%
13.8%US$27.00US$18.00US$27.175
Sep ’24US$17.01
US$22.00
+29.3%
14.9%US$28.00US$19.00US$29.675
Aug ’24US$19.95
US$22.40
+12.3%
15.6%US$28.00US$19.00US$27.745
Jul ’24US$21.09
US$24.00
+13.8%
18.5%US$30.00US$19.00US$25.116
Jun ’24US$24.80
US$23.50
-5.2%
17.3%US$30.00US$20.00US$24.196
May ’24US$26.48
US$24.04
-9.2%
16.4%US$29.00US$20.00US$23.467
Apr ’24US$24.19
US$21.43
-11.4%
6.4%US$23.50US$20.00US$22.177
Mar ’24US$17.14
US$20.57
+20.0%
11.2%US$23.50US$16.00US$19.507
Feb ’24US$21.16
US$21.64
+2.3%
13.5%US$25.00US$16.00US$18.707
Jan ’24US$19.42
US$19.95
+2.7%
12.8%US$23.50US$16.00US$18.697
Dec ’23US$18.81
US$19.45
+3.4%
10.9%US$23.00US$16.00US$20.057
Nov ’23US$13.31
US$18.70
+40.5%
13.7%US$23.00US$15.93US$17.367

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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