Newmont (NEM): Assessing Valuation After Gold’s Record Run and Renewed Bullish Analyst Sentiment

Newmont (NEM) just rode a wave of record breaking gold futures to a fresh all time high, as investors leaned into the metal on inflation worries, currency jitters, and ongoing central bank buying.

See our latest analysis for Newmont.

That macro tailwind has translated into a powerful move for Newmont, with a roughly 159% year to date share price return and a 173% one year total shareholder return signalling strong momentum as investors reassess both its growth potential and risk profile.

If Newmont’s run has you rethinking where to find the next leg of opportunity, it could be a good moment to explore fast growing stocks with high insider ownership as a curated hunting ground for fresh ideas.

But with Newmont now approaching analyst targets and enjoying a hefty rerating on the back of soaring gold, the key question is whether there is still a genuine buying opportunity here or whether markets are already pricing in years of future growth.

Most Popular Narrative Narrative: 5% Undervalued

With Newmont last closing at $99.33 against a narrative fair value near $104.53, the story leans toward upside as long term assumptions hold.

The realization of synergies and increased production scale following the Newcrest Mining acquisition, together with ongoing asset optimization and the ramp up of expansion projects (such as Ahafo North and Tanami), should support long term revenue growth and cash flow stability.

Read the complete narrative.

Curious how modest growth forecasts, expanding margins, and a disciplined earnings multiple can still argue for upside, even after a huge rally? The full narrative reveals the math.

Result: Fair Value of $104.53 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, several operational and capital intensity risks, from safety issues to rising sustaining capex, could quickly undermine the upbeat growth and valuation narrative.

Find out about the key risks to this Newmont narrative.

Build Your Own Newmont Narrative

If you see the story differently or would rather lean on your own analysis, you can build a personalized view in under three minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Newmont.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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