Key Stats for AU Stock
- Past-Week Performance: -13%
- 52-Week Range: $28 to $116
- Valuation Model Target Price: $115
- Implied Upside: %21 over 1.9 years
What Happened to AU Stock?
AngloGold Ashanti (AU) stock fell about 13% over the past week, trading through sharp intraday rebounds and declines as gold-linked equities oscillated amid heightened commodity price volatility.
Trading during late January through February 3 coincided with multiple Reuters reports detailing record gold prices above $5,100 per ounce, subsequent selloffs, margin requirement increases, and abrupt rebounds.
During this period, AngloGold Ashanti did not release earnings updates, revise guidance, or provide new operational disclosures regarding production volumes, cost trends, or geographic performance.
Market participants appeared to focus on extreme short-term movements in spot gold prices, limiting sustained share price follow-through as sector positioning adjusted to rapid bullion reversals.
As of February 3, trading reflected prevailing expectations tied to bullion sensitivity, while AngloGold Ashanti’s guidance, strategic direction, and long-term operating outlook remained unchanged.
Is AU Stock Fairly Valued Right Now?
Under the valuation model shown, the stock is modeled using:
- Revenue Growth: 32.4%
- Operating Margins: 48.5%
- Exit P/E Multiple: 11.2x
As a result of valuation model assumptions realized through December 2027, the model assesses AngloGold stock conditionally, with outcomes depending on revenue growth, margin expansion, and exit multiple stability.
Specifically, the model assumes 32.4% revenue growth, operating margins expanding to 48.5%, and an exit P/E multiple of 11.2x by the end of 2027.
Thus, based on these inputs, the model estimates a $114.94 target price, implying 21.2% total upside and a 10.6% annualized return.
Accordingly, achieving this outcome depends on sustained gold price strength translating into higher realized revenues, operating leverage, and margin expansion across AngloGold Ashanti’s production base.
AngloGold stock therefore reflects execution risk tied to commodity-linked earnings sensitivity, and valuation outcomes remain dependent on operational delivery rather than embedded optimism.
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