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 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 361.5% on a DCF basis. 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 32.34% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), NEWMONT Corp has a reliance on debt greater than just 21.79% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KL, SID, TG, WOR, and NGVT 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.
Newmont (NEM) and Agnico Eagle Mines (AEM) say they have formed a 50-50 joint venture in Colombia to explore the Anzá project and advance other prospective gold targets of district-scale potential in the country.Operator Agnico Eagle will solely fund the JV until expenditures equal Newmont's previous $2.9M investment in Anzá,...