Newmont Trades 2.9% Above DCF Value as 16.1x P/E Trails Mining Peers
Updated
Updated · Yahoo Finance · Aug 23
Newmont Trades 2.9% Above DCF Value as 16.1x P/E Trails Mining Peers
2 articles · Updated · Yahoo Finance · Aug 23
Summary
$128 a share is Newmont’s estimated intrinsic value under a discounted cash flow model, leaving the stock roughly 2.9% overvalued and near fair value after a strong three-year run.
$8.7 billion in latest 12-month free cash flow underpins that valuation, with the model assuming cash generation broadly levels off rather than grows rapidly.
An 8.3% recent share move — alongside higher gold prices and the appointment of a former BHP CFO to the board — helped push the market price slightly above the DCF estimate.
At 16.1 times earnings, Newmont still looks cheaper than the broader metals and mining industry at 21.8x and a peer-group average of 22.5x, leaving valuation signals mixed.