Gold · NYSE
Current Price
$107.61
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Newmont Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2021, it had proven and probable gold reserves of 92.8 million ounces and land position of 62,800 square kilometers. The company was founded in 1916 and is headquartered in Denver, Colorado.
ROIC (TTM)
15.1%
ROE (TTM)
25.2%
FCF Yield
10.68%
Based on trailing twelve-month data, NEM shows a free cash flow per share of N/A and a ROIC of 15.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 10.68% are important context metrics when evaluating NEM's stock valuation relative to peers.
The intrinsic value of NEM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether NEM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $107.61. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Newmont Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Gold industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting NEM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Newmont Corporation, this means projecting how much free cash flow the Gold will produce over the next 5-10 years, then discounting those amounts to today's dollars. NEM's ROIC of 15.1% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NEM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
