DCF Tool

NEM

Newmont Corp – Gold Ore Mining
newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. the company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in north america, south america, australia and africa. newmont is the only gold producer listed in the s&p 500 index and is widely recognized for its principled environmental, social and governance practices. the company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. newmont was founded in 1921 and has been publicly traded since 1925.
Analysis Results
Intrinsic Value $74.53
Latest Price $41.20
Relative Value 45% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.42 1.37
2024 1.57 1.46
2025 1.74 1.56
2026 1.92 1.66
2027 2.12 1.77
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 63.5 billion. This corresponds to a present value of 51.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.84 billion. Adding in the terminal value gives a total present value of 59.2 billion.

There are presently 795.0 million outstanding shares, so the intrinsic value per share is 74.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,515,000,000
Current Cash 3,757,000,000
Current Liabilities 2,926,000,000
Current Debt 96,000,000
Non-Cash Working Capital (NCWC) -72,000,000
Change in NCWC -233,000,000
EBIT 1,712,000,000
Tax Provision 455,000,000
Depreciation and Amortization 2,185,000,000
Capital Expenditure -2,131,000,000
Unlevered Free Cash Flow 1,078,000,000
Current Assets 7,696,000,000
Current Cash 5,074,000,000
Current Liabilities 2,654,000,000
Current Debt 193,000,000
Non-Cash Working Capital (NCWC) 161,000,000
Change in NCWC 198,000,000
EBIT 2,154,000,000
Tax Provision 1,098,000,000
Depreciation and Amortization 2,323,000,000
Capital Expenditure -1,653,000,000
Unlevered Free Cash Flow 1,165,569,858
Current Assets 8,505,000,000
Current Cash 5,830,000,000
Current Liabilities 3,369,000,000
Current Debt 657,000,000
Non-Cash Working Capital (NCWC) -37,000,000
Change in NCWC -1,544,000,000
EBIT 3,250,000,000
Tax Provision 704,000,000
Depreciation and Amortization 2,300,000,000
Capital Expenditure -1,302,000,000
Unlevered Free Cash Flow 2,017,325,330
Current Assets 6,272,000,000
Current Cash 2,480,000,000
Current Liabilities 2,385,000,000
Current Debt 100,000,000
Non-Cash Working Capital (NCWC) 1,507,000,000
Change in NCWC 809,000,000
EBIT 1,672,000,000
Tax Provision 832,000,000
Depreciation and Amortization 1,960,000,000
Capital Expenditure -1,463,000,000
Unlevered Free Cash Flow 2,610,760,295
Current Assets 5,277,000,000
Current Cash 3,445,000,000
Current Liabilities 1,787,000,000
Current Debt 653,000,000
Non-Cash Working Capital (NCWC) 698,000,000
Change in NCWC 344,000,000
EBIT 1,146,000,000
Tax Provision 386,000,000
Depreciation and Amortization 1,215,000,000
Capital Expenditure -1,032,000,000
Unlevered Free Cash Flow 1,045,544,680
Current Assets 5,066,000,000
Current Cash 3,321,000,000
Current Liabilities 1,395,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 354,000,000
Change in NCWC -327,000,000
EBIT 1,293,000,000
Tax Provision 1,125,000,000
Depreciation and Amortization 1,249,000,000
Capital Expenditure -866,000,000
Unlevered Free Cash Flow 224,000,000
Current Assets 4,677,000,000
Current Cash 2,812,000,000
Current Liabilities 1,750,000,000
Current Debt 566,000,000
Non-Cash Working Capital (NCWC) 681,000,000
Change in NCWC -234,000,000
EBIT 996,000,000
Tax Provision 563,000,000
Depreciation and Amortization 1,220,000,000
Capital Expenditure -1,133,000,000
Unlevered Free Cash Flow 849,000,000
Current Assets 4,983,000,000
Current Cash 2,801,000,000
Current Liabilities 1,416,000,000
Current Debt 149,000,000
Non-Cash Working Capital (NCWC) 915,000,000
Change in NCWC -16,000,000
EBIT 1,254,000,000
Tax Provision 644,000,000
Depreciation and Amortization 1,239,000,000
Capital Expenditure -1,401,000,000
Unlevered Free Cash Flow 199,153,094
Current Assets 5,439,000,000
Current Cash 2,476,000,000
Current Liabilities 2,198,000,000
Current Debt 166,000,000
Non-Cash Working Capital (NCWC) 931,000,000
Change in NCWC -165,000,000
EBIT 772,000,000
Tax Provision 133,000,000
Depreciation and Amortization 1,229,000,000
Capital Expenditure -1,110,000,000
Unlevered Free Cash Flow 521,466,135
Current Assets 4,874,000,000
Current Cash 1,633,000,000
Current Liabilities 2,740,000,000
Current Debt 595,000,000
Non-Cash Working Capital (NCWC) 1,096,000,000
Change in NCWC -71,000,000
EBIT 810,000,000
Tax Provision -813,000,000
Depreciation and Amortization 1,362,000,000
Capital Expenditure -1,900,000,000
Unlevered Free Cash Flow 201,000,000
Current Assets 5,945,000,000
Current Cash 1,647,000,000
Current Liabilities 3,141,000,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 1,167,000,000
Change in NCWC 884,000,000
EBIT 3,156,000,000
Tax Provision 869,000,000
Depreciation and Amortization 1,032,000,000
Capital Expenditure -3,210,000,000
Unlevered Free Cash Flow 966,615,083

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