{"id":593210,"date":"2026-08-23T04:58:14","date_gmt":"2026-08-23T04:58:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/593210\/"},"modified":"2026-08-23T04:58:14","modified_gmt":"2026-08-23T04:58:14","slug":"newmont-nem-stock-looks-near-fair-value-after-a-strong-run","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/593210\/","title":{"rendered":"Newmont (NEM) Stock Looks Near Fair Value After A Strong Run"},"content":{"rendered":"\n

Track your investments for FREE<\/a> with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. <\/p>\n

After a sharp three year run for Newmont stock, the latest checks suggest the shares now trade close to their Discounted Cash Flow intrinsic value while still screening as attractive on traditional market multiples. <\/p>\n

Newmont has returned very large gains over the past three years, which puts more focus on whether the current price still offers a reasonable margin of safety. <\/p>\n

Stronger gold prices and new project agreements can support cash flow expectations, while future production changes and cost pressures may limit how much value investors are willing to ascribe to that pipeline. <\/p>\n

Newmont scores 3 out of 6 on our valuation checks<\/a>, which points to a mixed picture rather than a clear bargain or clear overvaluation. <\/p>\n

The stock’s next move may depend on whether Newmont’s recent gains are already in line with its intrinsic value or if the current price still leaves room for further upside in the long run. <\/p>\n

Newmont delivered 87.9% returns over the last year. See how this stacks up to the rest of the Metals and Mining industry.<\/a> <\/p>\n

Where Does Newmont Sit on Cash Flow? <\/p>\n

The Discounted Cash Flow (DCF) method estimates what Newmont is worth today based on the cash it is expected to generate in the future. For Newmont, the model uses the latest twelve month free cash flow of about $8.7b and assumes cash flows that broadly level off rather than grow rapidly over time. <\/p>\n

On these inputs, the DCF model points to an estimated intrinsic value of about $128 per share. Compared with the current share price, this implies Newmont screens as roughly 2.9% overvalued, so the share price and cash flow value are quite close. The recent 8.3% move in Newmont stock, coinciding with higher gold prices and the board appointment of a former BHP CFO, helps explain why the market price now sits slightly above the DCF estimate. <\/p>\n

Overall, Newmont stock appears roughly fairly valued on this DCF view, with only a small premium to the modelled intrinsic value. <\/p>\n

Newmont is fairly valued according to our Discounted Cash Flow (DCF)<\/a>, but this can change at a moment’s notice. Track the value in your watchlist<\/a> or portfolio<\/a> and be alerted on when to act. <\/p>\n

\"NEM<\/a> NEM Discounted Cash Flow as at Aug 2026 <\/p>\n

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Newmont.<\/a> <\/p>\n

Is Newmont a Bargain on Earnings? <\/p>\n

P\/E suits Newmont because earnings remain a key yardstick for many investors looking at established producers. Newmont currently trades at about 16.1x earnings, which is below the broader metals and mining industry average of roughly 21.8x and below the peer group average of about 22.5x. <\/p>\n

Story Continues <\/p>\n

A tailored fair P\/E multiple for Newmont, which factors in its size, risk profile and sector, comes out at around 23.8x. This is meaningfully higher than where the stock trades today, so the market is applying a discount to what this model suggests might be a more typical earnings multiple for the company. <\/p>\n

On this P\/E lens, Newmont stock appears undervalued compared with both industry norms and its own modelled fair multiple. <\/p>\n

\"NYSE:NEM<\/a> NYSE:NEM P\/E Ratio as at Aug 2026 <\/p>\n

See what the numbers say about this price \u2014 find out in our valuation breakdown.<\/a> <\/p>\n

The Newmont Narrative: What Would Justify Today’s Price? <\/p>\n

Simply Wall St Narratives take Newmont’s valuation puzzle a step further by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price, and they sit on the company’s Community page. Where a ratio or model gives a single figure, these Narratives describe the future behind that number so you can watch how closely reality tracks it. <\/p>\n

Community views on Newmont are split between a bullish cash flow story and a more cautious read on long term risks. <\/p>\n

Bull case: 7% undervalued <\/p>\n

“Newmont’s focus on operational stability, cost discipline, and productivity enhancements (for example, at Lihir, Boddington, and across its core assets) is expected to drive lower operating costs and improved EBITDA margins…” <\/p>\n

Read the full Bull Case<\/a> to see why Newmont could be undervalued<\/a> <\/p>\n

Bear case: 56% overvalued <\/p>\n

“Compounded by ongoing depletion of economically viable reserves, Newmont will be forced to develop more lower-grade, higher-cost deposits, leading to a structural rise in all-in sustaining costs, which compresses operating and net margins even in periods of stable or rising metal prices…” <\/p>\n

Read the full Bear Case<\/a> to see why Newmont could be overvalued<\/a> <\/p>\n

Do you think there’s more to the story for Newmont? Head over to our Community to see what others are saying!<\/a> <\/p>\n

The Bottom Line <\/p>\n

For Newmont, the Discounted Cash Flow (DCF) estimate points to a share price that is close to intrinsic value, so the stock no longer screens as obviously cheap on that model. The P\/E based view is more supportive and suggests the stock trades at a discount to what comparable producers command. Overall, valuation checks look mixed rather than strongly one sided. The key question from here is whether Newmont can manage costs and project execution well enough to support the earnings power that would justify any rerating closer to those higher peer multiples. <\/p>\n

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. <\/p>\n

Companies discussed in this article include NEM<\/a>. <\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million…\n","protected":false},"author":2,"featured_media":593211,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,3297,78797,85,77209,46,252465,13132,39402],"class_list":["post-593210","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-cash-flow","tag-discounted-cash-flow","tag-il","tag-intrinsic-value","tag-israel","tag-newmont","tag-share-price","tag-stock-trades"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=593210"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/593211"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=593210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=593210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=593210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}