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Serabi GoldFRA:B9O2 -8.48%92 Degree of Financial Leverage is 0.87 as of Mar. 2026. GuruFocus rates FRA:B9O2 with a GF Score™ of 92/100 and a GF Value™ of €2.47 (Modestly Overvalued). Among 2,090 Metals & Mining companies, Serabi Gold ranks better than 52.54% on this metric.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Serabi Gold's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.87. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Serabi Gold's Degree of Financial Leverage or its related term are showing as below:
FRA:B9O2's Degree of Financial Leverage is ranked better than 52.54% of 2090
companies
in the Metals & Mining industry
Industry Median: 0.9
vs FRA:B9O2: 0.87
Serabi Gold (FRA:B9O2) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Serabi Gold Degree of Financial Leverage Related Terms
Serabi Gold Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Serabi Gold's Degree of Financial Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:B9O2 vs NEM, AU: Degree of Financial Leverage Comparison
For the Gold subindustry, Serabi Gold's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Serabi Gold Degree of Financial Leverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Serabi Gold's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Serabi Gold's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.87 mean?
Serabi Gold (FRA:B9O2) has a Degree of Financial Leverage of 0.87 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Serabi Gold and its competitors. According to the industry distribution chart, Serabi Gold ranks #992 out of 2090 companies in the Metals & Mining industry, placing it in the top 47.5%.
Is Serabi Gold's Degree of Financial Leverage too high?
Serabi Gold's current Degree of Financial Leverage is 0.87. The Metals & Mining industry median Degree of Financial Leverage is 0.90. Serabi Gold's value of 0.87 is 3.3% below this industry median. Based on the distribution chart, Serabi Gold ranks #992 out of 2090 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Serabi Gold has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Serabi Gold's Degree of Financial Leverage compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Serabi Gold ranks #992 out of 2090 companies for Degree of Financial Leverage. This puts Serabi Gold in the upper half of its industry. The industry median Degree of Financial Leverage is 0.90. Serabi Gold's value of 0.87 is 3.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Metals & Mining company?
The median Degree of Financial Leverage among Metals & Mining companies is 0.90, based on 2,090 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serabi Gold's current Degree of Financial Leverage of 0.87 is 3.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Serabi Gold and its competitors. For the Metals & Mining industry, the median Degree of Financial Leverage is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serabi Gold's current Degree of Financial Leverage is 0.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serabi Gold stock overvalued right now?
Based on GuruFocus' analysis, Serabi Gold (FRA:B9O2) is currently considered Modestly Overvalued. The stock's GF Value™ is €2.47, compared to a current price of €3.02 — trading 22.3% above its estimated fair value. The current Degree of Financial Leverage is 0.87 and 3.3% below the Metals & Mining industry median of 0.90. Serabi Gold's overall GF Score™ is 92/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Serabi Gold (FRA:B9O2), the current Degree of Financial Leverage is 0.87 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Serabi Gold (FRA:B9O2) Overvalued in 2026?
Based on GuruFocus' analysis, Serabi Gold stock appears to be overvalued.
The current stock price of €3.02 is trading 22.3% above its estimated GF Value™ of €2.47.
GuruFocus considers Serabi Gold to be Modestly Overvalued.
Key valuation signals for FRA:B9O2:
Degree of Financial Leverage: 0.87
GF Value™: €2.47 vs. price of €3.02 (22.3% above fair value)
Industry Position: 3.3% below the Metals & Mining median (#992 of 2090)
No single metric tells the full story. See the FRA:B9O2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serabi Gold PLC is a holding and gold sales company and a provider of support and management services to its operating subsidiaries. Together with its subsidiaries it is involved in the development of gold and other metals mining projects in Brazil and the operation of the Palito gold mine in the Tapajos region of Brazil. The company has only one primary business activity namely the conduct of gold mining and exploration in Brazil. It has two separate segments, Brazil and UK. Copper/ gold concentrate is produced in Brazil and sales routed through the UK, whilst sales of gold bullion are conducted directly from Brazil.
92GF Score
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Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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