Newmont Corp. is a gold producer, which engages in the production of gold. It operates through the following geographical segments: North America, South America, Australia, and Africa. The North America segment consists primarily of carlin, phoenix, twin creeks and long canyon in the state of Nevada and Cripple Creek and Victor in the state of Colorado, in the United States. The South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Australia segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Africa segment consists primarily of Ahafo and Akyem in Ghana. The company was founded by William Boyce Thompson on May 2, 1921 and is headquartered in Greenwood Village, CO.
NEM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for NEWMONT Corp. To summarize, we found that NEWMONT Corp ranked in the 75th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 219.67%. In terms of the factors that were most noteworthy in this DCF analysis for NEM, they are:
NEM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 29.58% 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 23.86% 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 UFPI, CNR, BLDR, AWI, and IAG.
DENVER–(BUSINESS WIRE)–Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced its Board of Directors has approved a share repurchase program for up to $1.0 billion of common equity, to be completed over the next 18 months. The program will be executed at the Company’s discretion, utilizing open market repurchases to occur from… Read More »Newmont Announces $1.0 Billion Share Repurchase Program
Newmont Corp. said Thursday its board has approved a share buyback program for up to $1 billion to be completed in the next 18 months. The gold and copper producer's new authorization builds on its 2020 $1.0 billion program, which saw it retire 22 million shares at an average price of $45 a share. Shares were up 0.5% premarket, and have gained 45% in the last 12 months, while the S&P 500 has gained 16%.