Newmont Corporation (NEM)
Valuation Overview•Is Newmont Corporation Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 91/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is highly bullish, projecting significant upside. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
NEM exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 24.9% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($7.2B) and minimal debt risk.
The company is driving exceptional top-line expansion (22.7% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 49.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $0.00 | +19.1% | +22.7% | +14.1% | +13.8% | |
| EBITDA | $2.1B | — | +40.5% | — | — | |
| Net Income | $66.0M | +111.6% | — | — | +41.5% | |
| EPS (Diluted) | $0.00 | +124.1% | — | +12.8% | +31.1% | |
| Free Cash Flow | $3.8B | +146.5% | +88.5% | +15.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 52.1% | 31.4% | 26.4% | 24.7% |
| Operating Margin | 49.3% | 27.8% | 22.5% | 20.1% |
| Net Margin | 30.5% | 9.6% | 6.9% | 9.1% |
| FCF Margin | 75.0% | 16.6% | 16.1% | 17.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.07 | $2.90 | +40.1% | ||
| Q1'26 | $2.07 | $2.52 | +21.7% | ||
| Q4'25 | $1.44 | $1.71 | +18.8% | ||
| Q3'25 | $0.91 | $1.43 | +58.0% | ||
| Q2'25 | $0.92 | $1.25 | +36.5% | ||
| Q1'25 | $1.11 | $1.40 | +26.1% | ||
| Q4'24 | $0.86 | $0.81 | -5.8% | ||
| Q3'24 | $0.62 | $0.72 | +16.1% |
Total return is +79.9% (1Y), outperforming the benchmark by +54.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +3.1% | -6.3% | — |
| 1Y | +79.9% | +54.9% | +1.8% |
| 3YCAGR | +35.5% | +16.7% | +7.7% |
| 5YCAGR | +12.2% | -0.3% | +11.8% |
| 10YCAGR | +12.6% | -1.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Newmont Corporation (NEM) valuation, health, and returns.
Newmont Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $118.84)
Newmont Corporation has multiple valuation anchors: DCF Intrinsic Value: $118.84 | Peer Relative Fair Value: $110.42 | Wall Street Analyst Target: $143.33 (implying +38.1% upside). A convergence of these signals offers higher conviction.
Newmont Corporation displays excellent financial health with a composite quality score of 91/100, supported by a Altman Z-Score of 3.7 (safe zone), Piotroski F-Score of 9/9, Return on Invested Capital (ROIC) of 24.9%.
Newmont Corporation pays a 1.0% dividend yield, covered by a 16% payout ratio with 0 years of growth, supplemented by a 2.0% buyback yield.
Newmont Corporation's current growth trajectory is Decelerating. The company achieved +19.1% 1Y revenue growth and +124.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +22.7%.
Wall Street consensus is Buy based on 36 analysts, beating EPS expectations in 67% of recent quarters with a 6-quarter streak. The consensus price target represents a +38.1% change from current levels.
Investment risks for Newmont Corporation include: -29.7% 1-year max drawdown, high beta (1.52x market volatility). Volatility risk is characterized by a beta of 1.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.