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DRDGOLD Limited (DRD) Fair Value & Analysis

Basic Materials · ZA · Market cap 28.5B ZAC

DL DRDGOLD Limited DRD · JSE
PriceR39.62
Fair ValueR20.35
Upside-48.6%
Quality69/100
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Expensive Growth
Highly profitable · 35.1% net margin
Low debt · generates free cash flow
0.26% dividend yield
Mixed vs. peers (8/15)
Wide moat 76/100
Evidence: High Range R14.36 – R30.41 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from R26.20 to R20.35 (−22.3%) since Jul 20, 2026. Share price +15.6% over the past month.

A solid business, but screening 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (R30.41). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (R14.36 to R30.41) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R62.33 R8.56 Fair Value R20.35 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R8.56 – R62.33 · fair‑value band R14.36 – R30.41 · the R39.62 price screens above the R20.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

DRDGOLD Limited (DRD) currently trades at R39.62, while our model-based Fair Value estimate is R20.35, implying the stock looks roughly 48.6% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, DRDGOLD Limited generated revenue of 9.1B ZAR at a net margin of 35.1%. Revenue grew 32.9% year over year. It earns a return on equity of 34.7%. The balance sheet holds a net cash position of 1.3B ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R14.36 (bear case) to R30.41 (bull case); at R39.62, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Basic Materials peers we cover trades at 1% fair-value upside, at -49%, DRD screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R19.59 R32.28 R53.30 80
Residual Income R17.81 R24.97 R165.31 76
Rev-Margin DCF R13.71 R21.10 R30.43 74
All 26 models by family
DCF Models
FCF DCF R19.62 R33.13 R55.94 38
Owner Earnings R7.95 R12.76 R20.87 31
5Y Revenue Exit R13.71 R21.11 R30.78 39
5Y EBITDA Exit R14.75 R23.19 R33.42 41
5Y P/E Exit R27.71 R49.31 R73.67 38
10Y Revenue Exit R15.26 R22.85 R33.77 36
10Y EBITDA Exit R16.26 R24.36 R35.93 37
10Y P/E Exit R24.77 R43.26 R68.90 35
Earnings-Based
Graham-Dodd R17.58 R75.13 R102.63 54
Lynch FV R19.20 R27.43 R35.66 50
PEG = 1.0 R19.20 R27.43 R35.66 46
EPV R6.54 R7.38 R8.11 59
Dividend Discount
Gordon GGM R4.56 R9.49 R15.05 70
DDM Multi-Stage R4.56 R8.00 R9.96 61
Multiples
P/E Multiple R32.97 R43.95 R54.94 63
P/S Multiple R10.22 R13.62 R17.03 58
P/B Multiple R23.04 R30.72 R38.40 55
EV/EBIT R12.60 R16.30 R20.00 53
EV/EBITDA R13.40 R17.37 R21.33 54
EV/Revenue R11.04 R15.13 R19.22 43
Asset-Based
NCAV (Graham) R5.12 R6.86 R10.24 50
Growth DCF
Growth DCF R19.59 R32.28 R53.30 80
Rev-Margin DCF R13.71 R21.10 R30.43 74
Economic Profit
Residual Income R17.81 R24.97 R165.31 76
ROIC Compounder R6.54 R7.38 R8.11 72
Growth Earnings
Growth-Adj P/E R28.74 R41.06 R53.38 68

Widest divergence: Growth Earnings (R41.06) versus Asset-Based (R6.86). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 9.1B ZAC
Revenue growth (YoY) +32.9%
Net margin 35.1%
Return on equity 34.7%
Free cash flow 1.3B ZAC FY2025
P/E ratio 15.3
More key figures
Operating margin 46.3%
EPS (TTM) R2.59
Dividend yield 0.3%
EPS growth (YoY) +97.9%
Net cash 1.3B ZAC FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 69 · Market factors (momentum, volatility) 48

Profitability 75
Margins and returns on capital today
Quality Growth 87
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 4
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

DRDGOLD Limited, a gold mining company, engages in the extraction of gold from the retreatment of surface mine tailings in South Africa. It sells gold and silver bullion. It is involved in provision care and maintenance services; produces renewable power; employee home loans; and operation of training center.

Full company description

DRDGOLD Limited, a gold mining company, engages in the extraction of gold from the retreatment of surface mine tailings in South Africa. It sells gold and silver bullion. It is involved in provision care and maintenance services; produces renewable power; employee home loans; and operation of training center. The company was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa. DRDGOLD Limited is a subsidiary of Sibanye Gold Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

DRDGOLD Limited reported revenue of R7.9B in FY2025 versus R5.3B in FY2021, a compound +10.6%/yr. Reported net income was R2.2B in FY2025, compounding +11.7%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
7.9B ZAR
Latest YoY
+26.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.5%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.7%
Revenue +10.6%/yr
FY21 R5.3B
FY22 R5.1B
FY23 R5.5B
FY24 R6.2B
FY25 R7.9B
Net income +11.7%/yr
FY21 R1.4B
FY22 R1.1B
FY23 R1.3B
FY24 R1.3B
FY25 R2.2B
Character of growth · EPS growth decomposed (2015-2025) +33.6 % p.a.
Revenue per share +3.6 pp

of which total revenue +13.3 pp · buybacks/dilution −9.7 pp

EBIT margin +14.4 pp
Tax rate +1.8 pp
Residual (interest, one-offs) +13.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

DRD screens 49% overvalued. Compare with Newmont Corporation →

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Cite: Fair Value Calculator (2026). "DRDGOLD Limited Fair Value". https://www.fairvalue-calculator.com/stock/DRD

Peer Group

Gold · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside −48% · Below median
Return on equity (TTM) 35% · Top 25%
Return on assets 20% · Top 25%
Net margin (TTM) 35% · Top 25%
Operating margin (TTM) 46% · Above median
Revenue growth 33% · Below median
Dividend yield (TTM) 0.3% · Bottom 25%

Valuation Multiples vs Gold median · lower = cheaper

P/E (TTM) 15.3× · Pricier than median
P/B 3.21× · Pricier than median
P/S (TTM) 3.13× · Pricier than median
P/FCF 1.4× · Cheaper than 75% of peers
EV/EBITDA 6.1× · Pricier than median
PEG 0.01× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 100
PAST 100 · sector 0
HEALTH 100 · sector 98
DIVIDEND 5 · sector 23

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Gold stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Newmont Corporation NEMCL $112.00 $112.82 +1%
Zijin Mining Group 601899 ¥32.21 ¥39.42 +22%
Agnico Eagle Mines Limited AEM C$257.82 C$154.33 -40%
Barrick Mining Corporation B $41.23 $50.66 +23%
Wheaton Precious Metals Corp WPM C$187.84 C$52.47 -72%
Franco-Nevada Corporation FNV C$334.84 C$97.76 -71%
AngloGold Ashanti plc AU $97.92 $88.63 -9%
Gold Fields Limited GFI $40.73 $59.06 +45%
Zijin Gold International Company 2259 HK$135.60 HK$96.81 -29%
Kinross Gold Corporation KGC $27.48 $34.62 +26%

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Frequently asked questions

Is DRDGOLD Limited (DRD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R20.35 versus a price of R39.62, about −49% (overvalued).
What is the fair value of DRD?
Our model-based fair value for DRDGOLD Limited is R20.35 (as of Aug 13, 2026), built from audited fundamentals. The current price is R39.62.
What is the quality score of DRD?
DRDGOLD Limited has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of DRDGOLD Limited (DRD)?
DRDGOLD Limited reported trailing-twelve-month revenue of about 9.1B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DRD?
The net profit margin of DRDGOLD Limited is about 35.1%, meaning it keeps roughly 35.1% of revenue as net income. Based on the latest reported figures.
Does DRDGOLD Limited pay a dividend?
DRDGOLD Limited currently shows a dividend yield of about 0.23% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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