AngloGold Ashanti Gross Profit vs. Price To Earning

AU Stock  USD 25.20  0.75  2.89%   
Considering the key profitability indicators obtained from AngloGold Ashanti's historical financial statements, AngloGold Ashanti plc may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess AngloGold Ashanti's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1997-03-31
Previous Quarter
687 M
Current Value
541 M
Quarterly Volatility
212 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, AngloGold Ashanti's Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 3.06 in 2024, whereas Days Of Sales Outstanding is likely to drop 1.89 in 2024. Accumulated Other Comprehensive Income is likely to gain to about 5.7 B in 2024, whereas Operating Income is likely to drop slightly above 380 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.320.2241
Significantly Up
Very volatile
Operating Profit Margin0.10.1521
Way Down
Pretty Stable
For AngloGold Ashanti profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AngloGold Ashanti to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AngloGold Ashanti plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AngloGold Ashanti's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AngloGold Ashanti plc over time as well as its relative position and ranking within its peers.
  
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Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AngloGold Ashanti. If investors know AngloGold will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AngloGold Ashanti listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.62)
Earnings Share
1.33
Revenue Per Share
12.668
Quarterly Revenue Growth
0.308
Return On Assets
0.0666
The market value of AngloGold Ashanti plc is measured differently than its book value, which is the value of AngloGold that is recorded on the company's balance sheet. Investors also form their own opinion of AngloGold Ashanti's value that differs from its market value or its book value, called intrinsic value, which is AngloGold Ashanti's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AngloGold Ashanti's market value can be influenced by many factors that don't directly affect AngloGold Ashanti's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AngloGold Ashanti's value and its price as these two are different measures arrived at by different means. Investors typically determine if AngloGold Ashanti is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AngloGold Ashanti's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

AngloGold Ashanti plc Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AngloGold Ashanti's current stock value. Our valuation model uses many indicators to compare AngloGold Ashanti value to that of its competitors to determine the firm's financial worth.
AngloGold Ashanti plc is number one stock in gross profit category among its peers. It also is number one stock in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for AngloGold Ashanti plc is about  142,946,317 . At this time, AngloGold Ashanti's Gross Profit is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value AngloGold Ashanti by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

AngloGold Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

AngloGold Ashanti

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.15 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

AngloGold Ashanti

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
8.01 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

AngloGold Price To Earning Comparison

AngloGold Ashanti is currently under evaluation in price to earning category among its peers.

AngloGold Ashanti Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AngloGold Ashanti, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AngloGold Ashanti will eventually generate negative long term returns. The profitability progress is the general direction of AngloGold Ashanti's change in net profit over the period of time. It can combine multiple indicators of AngloGold Ashanti, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income5.4 B5.7 B
Operating Income697 M380 M
Income Before Tax63 M59.9 M
Total Other Income Expense Net-634 M-602.3 M
Net Loss-235 M-223.2 M
Income Tax Expense285 M167.8 M
Net Income Applicable To Common Shares341.6 M188.6 M
Net Loss-222 M-210.9 M
Interest Income127 M74.7 M
Net Interest Income-30 M-31.5 M
Change To Netincome894.6 M567.5 M
Net Loss(0.56)(0.53)
Income Quality(4.13)(4.34)
Net Loss(3.73)(3.54)

AngloGold Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on AngloGold Ashanti. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AngloGold Ashanti position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AngloGold Ashanti's important profitability drivers and their relationship over time.

Use AngloGold Ashanti in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AngloGold Ashanti position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AngloGold Ashanti will appreciate offsetting losses from the drop in the long position's value.

AngloGold Ashanti Pair Trading

AngloGold Ashanti plc Pair Trading Analysis

The ability to find closely correlated positions to AngloGold Ashanti could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AngloGold Ashanti when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AngloGold Ashanti - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AngloGold Ashanti plc to buy it.
The correlation of AngloGold Ashanti is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AngloGold Ashanti moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AngloGold Ashanti plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AngloGold Ashanti can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your AngloGold Ashanti position

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Additional Tools for AngloGold Stock Analysis

When running AngloGold Ashanti's price analysis, check to measure AngloGold Ashanti's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AngloGold Ashanti is operating at the current time. Most of AngloGold Ashanti's value examination focuses on studying past and present price action to predict the probability of AngloGold Ashanti's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AngloGold Ashanti's price. Additionally, you may evaluate how the addition of AngloGold Ashanti to your portfolios can decrease your overall portfolio volatility.