Barrick Gold - Comparative Multiple Analysis

Barrick Gold (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Barrick Gold

WikiWealth compares Barrick Gold's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Barrick Gold's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Barrick Gold.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Barrick Gold's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Barrick Gold's Analysis


How does this work? The Comparative Investment Analysis determines the value of Barrick Gold by comparing Barrick Gold financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Barrick Gold.

See the Barrick Gold cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Barrick Gold.

Also, see the Barrick Gold's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Barrick Gold's valuation conclusion for a quick summary.