As of June 13, 2025, Newmont Corporation's estimated intrinsic value ranges from $34.10 to $78.76 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $78.76 | +40.8% |
| Discounted Cash Flow (5Y) | $67.80 | +21.2% |
| Dividend Discount Model (Multi-Stage) | $50.80 | -9.2% |
| Dividend Discount Model (Stable) | $60.80 | +8.7% |
| Earnings Power Value | $34.10 | -39.0% |
Is Newmont Corporation (NEM) undervalued or overvalued?
With the current market price at $55.92, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Newmont Corporation's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.06 | 1.1 |
| Cost of equity | 8.8% | 11.0% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 8.0% | 10.0% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $68 | $78,745M | 77.6% |
| 10-Year Growth | $79 | $90,949M | 60.2% |
| 5-Year EBITDA | $53 | $61,932M | 71.6% |
| 10-Year EBITDA | $65 | $75,818M | 52.3% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,656M |
| Discount Rate (WACC) | 10.0% - 8.0% |
| Enterprise Value | $36,678M - $45,807M |
| Net Debt | $3,288M |
| Equity Value | $33,390M - $42,519M |
| Outstanding Shares | 1,113M |
| Fair Value | $30 - $38 |
| Selected Fair Value | $34.10 |
| Metric | Value |
|---|---|
| Market Capitalization | $62239M |
| Enterprise Value | $65527M |
| Trailing P/E | 12.28 |
| Forward P/E | 15.52 |
| Trailing EV/EBITDA | 5.95 |
| Current Dividend Yield | 195.45% |
| Dividend Growth Rate (5Y) | 8.25% |
| Debt-to-Equity Ratio | 0.15 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $23.63 |
| Discounted Cash Flow (5Y) | 25% | $16.95 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.16 |
| Dividend Discount Model (Stable) | 15% | $9.12 |
| Earnings Power Value | 10% | $3.41 |
| Weighted Average | 100% | $63.27 |
Based on our comprehensive valuation analysis, Newmont Corporation's weighted average intrinsic value is $63.27, which is approximately 13.1% above the current market price of $55.92.
Key investment considerations:
Given these factors, we believe Newmont Corporation is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.