Newmont Goldcorp acquires, develops, explores for, and produces gold, copper, and silver deposits in the United States, Australia, Peru, Indonesia, Ghana, and New Zealand. The company was founded in 1916 and is based in Greenwood Village, Colorado.
NEM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for NEWMONT Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that NEWMONT Corp ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 257.5%. The most interesting components of our discounted cash flow analysis for NEWMONT Corp ended up being:
NEM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.25% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), NEWMONT Corp has a reliance on debt greater than only 20.27% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NEM, try NTIC, RIO, UFPI, EMN, and CNR.