Is AngloGold Ashanti plc (AU) overvalued?
On Equity Rank's model estimate, AU trades close to its fair value (0% below it). AngloGold Ashanti plc (AU) last closed at $92.99; the multi-method model fair value is $93.25.
| Price | Model fair value | Price vs model |
|---|---|---|
| $92.99 | $93.25 | 0% below |
What the answer rests on
- 6 of 13 valuation methods put AU's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, AU's free cash flow would need to grow about 0.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 58.8% a year.
- AU trades at 11.8 times its last year's earnings, against a median of 12.4 for 36 profitable Mining companies.
- Over the past year the price sat below the model fair value on 66% of trading days. The gap ranged from 18% below to 7% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind AU's fair value · What prices assume · Other companies