Current Price
$100.23
PE Ratio (TTM)
12.9x
Intrinsic Value
$124.9
+19.8% margin of safety
COMPETITIVE MOAT
↑Vast, High-Quality Reserves
Newmont possesses extensive, long-life gold reserves, providing a significant competitive advantage. This deep resource base underpins future production and profitability.
↑Operational Scale and Expertise
As the world's largest gold miner, Newmont benefits from economies of scale and deep operational expertise. This allows for efficient extraction and processing of gold.
↑Strong Free Cash Flow Generation
Recent performance highlights exceptional free cash flow, enabling aggressive capital allocation. This financial strength supports shareholder returns and strategic investments.
INVESTMENT RISKS
↓Commodity Price Volatility
Gold prices are inherently volatile, directly impacting Newmont's revenue and profitability. Global economic uncertainty can exacerbate these price swings.
↓Operational Challenges
Despite strong cash flow, the company has faced operational challenges. These can disrupt production and increase costs, affecting output.
↓Regulatory and Environmental Hurdles
Mining operations are subject to stringent regulations and environmental scrutiny. Changes in policy or unforeseen environmental issues can lead to significant costs and delays.
Base case
NEM base case PE valuation
A base case PE valuation for NEM estimates a fair value of about $124.9 per share, against a current price of $100.23. The model assumes 7.2% annual earnings growth, a 13x target PE multiple, and a 10% discount rate.
Intrinsic Value
$124.9
Margin of safety
+19.8%
Expected annual return
+4.5%
Base case assumptions: 7.2% annual earnings growth, 13x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NEM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Newmont Corporation respond.
Open PE Calculator for NEMCompany Overview
Newmont Corporation is primarily involved in the mining and exploration of gold resources. Additionally, the company undertakes prospecting for other base and precious metals, including copper, silver, zinc, and lead. Its operations and assets are geographically widespread, located across various countries such as the United States, Canada, Mexico, the Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of the close of 2021 (December 31st), Newmont reported substantial proven and probable gold reserves, totaling 92.8 million ounces, and managed a vast land portfolio covering 62,800 square kilometers. Founded in 1916, the company's corporate headquarters are situated in Denver, Colorado.
Financial Metrics — NEM PE Stock Valuation Data
PE Ratio (TTM)
12.9x
PEG Ratio
0.17
Earnings Yield
7.78%
ROE (TTM)
25.2%
Revenue/Share (TTM)
$22.50
Dividend Yield
1.02%
Debt/Equity
0.16x
Frequently Asked Questions
What is the PE ratio of NEM?
The trailing twelve-month PE ratio of NEM reflects how much investors pay per dollar of Newmont Corporation's earnings. This metric is most useful when compared to Gold peers and the company's own historical range.
Is NEM overvalued based on PE ratio?
NEM's PE of 12.9x combined with a PEG ratio of 0.17 provides a growth-adjusted perspective. A PEG below 1.0 suggests NEM may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Gold, a DCF analysis may be more appropriate.
How do I value NEM stock using PE ratio?
To value Newmont Corporation using PE: (1) Compare the current PE (12.9x) against the Gold median to assess relative pricing, (2) check the PEG ratio (0.17) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of NEM?
NEM's PEG ratio is 0.17, calculated by dividing the PE ratio (12.9x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NEM stock valuation?
PE ratio gives a quick relative read — how NEM is priced versus Gold peers. DCF provides an absolute value based on projected free cash flows. For NEM, with a strong ROE of 25.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See NEM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value NEM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.