Barrick Mining (NYSE:B) shares have seen some action recently, drawing attention from investors curious about the company’s performance this month. The stock’s steady climb is encouraging a closer look at what is driving sentiment.
Barrick Mining’s impressive momentum is catching attention, with a 1-day share price return of 1.67% capping off a 7-day surge of nearly 12%. This builds on a strong year-to-date rally, as investors respond to ongoing strength in commodities and a robust three-year total shareholder return of 155%. These are clear signs that confidence and growth potential are building.
If this kind of performance has you looking for more opportunities, it could be the perfect time to broaden your horizons and discover fast growing stocks with high insider ownership
But with Barrick Mining’s shares on a winning streak and trading only modestly below analyst price targets, the big question now is whether there is hidden value left for investors or if all future growth is already reflected in the price.
Price-to-Earnings of 17.5x: Is it justified?
Barrick Mining currently trades at a price-to-earnings (P/E) ratio of 17.5x, which is notably lower than both its industry and peer averages. Despite recent share price gains, the company still looks attractively valued relative to its competitors.
The price-to-earnings ratio measures the market’s expectations for a company’s earnings power. For a mining company like Barrick, this is especially useful as it reflects how the market values current profitability compared to sector benchmarks. With solid earnings growth and climbing profits, a lower P/E suggests the market may be cautious about future results or earnings sustainability.
Compared to the US Metals and Mining industry average of 20.5x and a peer group average of 22.1x, Barrick’s multiple stands out as good value. Our estimate of a fair P/E ratio for Barrick is 25.7x. This indicates there is potential for the market to rerate the stock upwards if strong results continue.
Result: Price-to-Earnings of 17.5x (UNDERVALUED)
However, slower revenue or profit growth, or shifts in commodity demand, could quickly challenge the current optimism around Barrick Mining’s recent momentum.
Another View: What Does the DCF Model Say?
While the market sees Barrick Mining as undervalued based on its current price-to-earnings ratio, our SWS DCF model points to an even larger gap, estimating fair value at $138.58 per share, well above today’s price. Is the market missing something, or is this optimism misplaced?
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Barrick Mining for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 894 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Build Your Own Barrick Mining Narrative
If you see things differently or want to explore the numbers on your own terms, you can shape your own view in just a few minutes, and Do it your way
A great starting point for your Barrick Mining research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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