Assessing Barrick Mining (TSX:ABX) Valuation As Earnings Approach And New CFO Helen Cai Steps In

Barrick Mining (TSX:ABX) is drawing attention ahead of its upcoming earnings, as investors weigh expectations for revenue and profit gains alongside the appointment of Helen Cai as incoming Chief Financial Officer.

See our latest analysis for Barrick Mining.

The upcoming CFO transition and earnings announcement come after a sharp 35.2% 90 day share price return and a very large 1 year total shareholder return of 167.5%. However, the 1 day share price return decline of 11.3% shows that momentum has recently cooled.

If Barrick’s recent moves have you thinking more broadly about opportunities in resources and beyond, it could be a good time to scan fast growing stocks with high insider ownership for other ideas catching market attention.

With Barrick Mining trading at CA$62.24 and sitting at a discount to both analyst price targets and some intrinsic value estimates, the key question now is whether there is still upside left or whether the market has already priced in future growth.

Most Popular Narrative: 3.7% Overvalued

Compared to the last close at CA$62.24, the most followed narrative suggests fair value around CA$60, putting Barrick Mining slightly above that line today.

With its shares trading at CAD 48.07, the company appears undervalued relative to fair value estimates, offering a potential buffer in volatile weeks ahead.

With safe-haven demand for gold likely to strengthen if the U.S. shutdown drags on, the company offers investors both defensive exposure and upside potential.

Read the complete narrative.

Curious what drives that fair value number? The narrative leans on steady revenue expansion, firm profit margins and a future earnings multiple that would surprise many miners.

Result: Fair Value of CA$60 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, a sharp reversal in safe haven demand for gold or a setback in copper projects could quickly challenge the case for Barrick’s current valuation.

Find out about the key risks to this Barrick Mining narrative.

Another Take: Earnings Multiple Paints a Different Picture

While the user narrative pegs fair value at CA$60 and labels the shares as slightly overvalued, the earnings multiple tells a different story. Barrick Mining trades on a P/E of 21.5x, compared with 41.7x for peers and 24.8x for the Canadian Metals and Mining industry, and below a fair ratio of 27.4x. That gap hints at potential valuation upside, but also raises the question: what would need to change for the market to close it?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Barrick Mining Narrative

If you interpret the numbers differently or prefer to test your own assumptions, you can create a new Barrick view in minutes with Do it your way.

A great starting point for your Barrick Mining research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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