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Relatively High EV/EBITDA Ratio Detected in Shares of Franco-Nevada in the Gold Industry (FNV, RGLD, GOLD, BVN, AEM)

By David Diaz

Below are the three companies in the Gold industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Franco-Nevada ranks highest with a an EV/EBITDA ratio of 32.41. Following is Royal Gold with a an EV/EBITDA ratio of 29.02. Randgold Resources ranks third highest with a an EV/EBITDA ratio of 24.71.

Cia de Minas Buenaventura follows with a an EV/EBITDA ratio of 20.09, and Agnico-Eagle Mines rounds out the top five with a an EV/EBITDA ratio of 16.06.

SmarTrend recommended that its subscribers protect gains by selling shares of Franco-Nevada on October 3rd, 2016 by issuing a Downtrend alert when the shares were trading at $68.92. Since that call, shares of Franco-Nevada have fallen 4.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio franco-nevada Royal Gold Randgold Resources cia de minas buenaventura agnico-eagle mines