Harmony Gold Mining - Comparative Multiple Analysis

Harmony Gold Mining (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Harmony Gold Mining

WikiWealth compares Harmony Gold Mining'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 Harmony Gold Mining's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Harmony Gold Mining.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Harmony Gold Mining'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 Harmony Gold Mining's Analysis


How does this work? The Comparative Investment Analysis determines the value of Harmony Gold Mining by comparing Harmony Gold Mining 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 Harmony Gold Mining.

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

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