Newmont Valuation

Q: What is the Fair Price of NEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NEM (A$67.21) is trading below our estimate of [[fair value]] (A$78.29)

Is NEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEM (A$67.21) is trading below our estimate of fair value (A$78.29)

Significantly Below Fair Value: NEM is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NEM. This is calculated by dividing NEM's market cap by their current preferred multiple.
What is NEM's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

NEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.4x
Enterprise Value/EBITDA	9.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NEM's PS Ratio compare to its peers?

The above table shows the PS ratio for NEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.4x
NCM Newcrest Mining	3x	5.2%	AU$20.8b
NST Northern Star Resources	3.9x	8.5%	AU$19.3b
EVN Evolution Mining	3x	3.7%	AU$9.7b
WGX Westgold Resources	3.8x	19.0%	AU$2.7b
NEM Newmont	3x	5.6%	AU$51.4b

Price-To-Sales vs Peers: NEM is good value based on its Price-To-Sales Ratio (3x) compared to the peer average (3.6x).

Price to Earnings Ratio vs Industry

How does NEM's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	10.2%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	10.2%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: NEM is good value based on its Price-To-Sales Ratio (3x) compared to the Australian Metals and Mining industry average (63.7x).

Price to Sales Ratio vs Fair Ratio

What is NEM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3x
Fair PS Ratio	3.4x

Price-To-Sales vs Fair Ratio: NEM is good value based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.