Is Newmont Goldcorp Corp (NEM) overvalued?
On Equity Rank's model estimate, NEM trades close to its fair value (3% above it). Newmont Goldcorp Corp (NEM) last closed at $120.91; the multi-method model fair value is $117.11.
| Price | Model fair value | Price vs model |
|---|---|---|
| $120.91 | $117.11 | 3% above |
What the answer rests on
- 4 of 13 valuation methods put NEM's value above its price and 9 put it below, so the methods disagree.
- To justify today's price, NEM's free cash flow would need to grow about 0.1% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 88.5% a year.
- NEM trades at 13.9 times its last year's earnings, against a median of 12.1 for 36 profitable Mining companies.
- Over the past year the price sat below the model fair value on 49% of trading days. The gap ranged from 25% below to 16% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind NEM's fair value · What prices assume · Other companies