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 71th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of NEWMONT Corp, consider:
The company's compound free cash flow growth rate over the past 5.56 years comes in at 0.59%; that's greater than 85.67% of US stocks we're applying DCF forecasting to.
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 35.69% 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 21.58% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CE, OR, RS, MTX, and RIO can be thought of as valuation peers to NEM, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.