Harmony Gold Mining Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 HAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HAR (ZAR164.42) is trading above our estimate of fair value (ZAR117.92)

Significantly Below Fair Value: HAR is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HAR. This is calculated by dividing HAR's market cap by their current earnings.
What is HAR's PE Ratio?
PE Ratio	11.9x
Earnings	R8.59b
Market Cap	R101.93b

HAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	5.3x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.6x
GFI Gold Fields	18.9x	39.3%	R230.6b
KIO Kumba Iron Ore	5.5x	-9.4%	R111.0b
NPH Northam Platinum Holdings	24.6x	29.9%	R44.1b
AMS Anglo American Platinum	13.6x	16.3%	R157.6b
HAR Harmony Gold Mining	11.9x	30.3%	R101.9b

Price-To-Earnings vs Peers: HAR is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (15.6x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HAR is good value based on its Price-To-Earnings Ratio (11.9x) compared to the African Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is HAR'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.

HAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.9x
Fair PE Ratio	17.3x

Price-To-Earnings vs Fair Ratio: HAR is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

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 HAR forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	R164.42	R160.67 -2.3%	15.6%	R190.00	R120.00	n/a	6
Nov ’25	R188.61	R162.71 -13.7%	17.5%	R210.00	R120.00	n/a	7
Oct ’25	R186.40	R143.50 -23.0%	23.8%	R181.00	R90.00	n/a	6
Sep ’25	R178.27	R144.00 -19.2%	24.7%	R185.00	R88.00	n/a	6
Aug ’25	R175.65	R132.43 -24.6%	26.0%	R185.00	R88.00	n/a	7
Jul ’25	R167.90	R134.00 -20.2%	21.7%	R175.00	R90.00	n/a	7
Jun ’25	R170.91	R129.00 -24.5%	21.6%	R160.00	R90.00	n/a	7
May ’25	R164.91	R122.83 -25.5%	25.3%	R165.00	R90.00	n/a	6
Apr ’25	R158.01	R95.00 -39.9%	21.1%	R125.00	R60.00	n/a	6
Mar ’25	R112.11	R90.71 -19.1%	20.9%	R125.00	R60.00	n/a	7
Feb ’25	R121.00	R89.86 -25.7%	21.0%	R125.00	R60.00	n/a	7
Jan ’25	R119.59	R78.86 -34.1%	16.3%	R98.00	R60.00	n/a	7
Dec ’24	R118.41	R79.43 -32.9%	14.9%	R98.00	R66.00	R165.00	7
Nov ’24	R84.50	R70.71 -16.3%	8.9%	R85.00	R63.00	R188.61	7
Oct ’24	R71.02	R73.29 +3.2%	9.5%	R88.00	R68.00	R186.40	7
Sep ’24	R78.28	R81.00 +3.5%	13.3%	R101.00	R68.00	R178.27	7
Aug ’24	R74.79	R79.43 +6.2%	16.5%	R101.00	R57.00	R175.65	7
Jul ’24	R79.25	R78.71 -0.7%	19.3%	R94.00	R47.00	R167.90	7
Jun ’24	R95.02	R73.86 -22.3%	21.0%	R94.00	R47.00	R170.91	7
May ’24	R85.57	R71.86 -16.0%	23.6%	R94.00	R47.00	R164.91	7
Apr ’24	R73.18	R55.71 -23.9%	19.4%	R70.00	R40.00	R158.01	7
Mar ’24	R56.20	R57.50 +2.3%	19.3%	R75.00	R40.00	R112.11	8
Feb ’24	R63.29	R57.88 -8.6%	19.8%	R75.00	R40.00	R121.00	8
Jan ’24	R58.80	R55.57 -5.5%	24.7%	R75.00	R40.00	R119.59	7
Dec ’23	R65.80	R53.25 -19.1%	26.3%	R75.00	R39.00	R118.41	8

Analyst Forecast: Target price is lower than the current share price.