Discounted Cash Flow (DCF) Analysis Unlevered

Newmont Corporation (NEM)

$40.395

-0.19 (-0.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 162.02 | 40.395 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 7,3487,2539,74011,49712,22213,974.0715,977.3018,267.7020,886.4423,880.58
Revenue (%)
EBITDA 2,5172,1495,8986,1414,8616,082.196,954.097,950.999,090.7910,393.99
EBITDA (%)
EBIT 1,2689343,9383,8412,5383,486.243,9864,557.415,210.735,957.71
EBIT (%)
Depreciation 1,2491,2151,9602,3002,3232,595.952,968.093,393.583,880.064,436.28
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 3,3213,4452,4805,8305,0745,879.726,722.607,686.318,788.1710,047.98
Total Cash (%)
Account Receivables 237346373449337516.71590.78675.47772.30883.01
Account Receivables (%)
Inventories 6796301,0141,7901,7871,635.741,870.232,138.342,444.872,795.36
Inventories (%)
Accounts Payable 375303539493518652.34745.86852.78975.031,114.80
Accounts Payable (%)
Capital Expenditure -866-1,032-1,463-1,302-1,653-1,841.34-2,105.30-2,407.10-2,752.17-3,146.70
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 40.395
Beta 0.288
Diluted Shares Outstanding 800
Cost of Debt
Tax Rate -5.23
After-tax Cost of Debt 4.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.351
Total Debt 6,302
Total Equity 32,316
Total Capital 38,618
Debt Weighting 16.32
Equity Weighting 83.68
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 7,3487,2539,74011,49712,22213,974.0715,977.3018,267.7020,886.4423,880.58
EBITDA 2,5172,1495,8986,1414,8616,082.196,954.097,950.999,090.7910,393.99
EBIT 1,2689343,9383,8412,5383,486.243,9864,557.415,210.735,957.71
Tax Rate 108.97%53.79%24.05%9.99%-5.23%38.31%38.31%38.31%38.31%38.31%
EBIAT -113.79431.562,991.093,457.272,670.862,150.522,458.812,811.293,214.293,675.08
Depreciation 1,2491,2151,9602,3002,3232,595.952,968.093,393.583,880.064,436.28
Accounts Receivable --109-27-76112-179.71-74.07-84.69-96.83-110.71
Inventories -49-384-7763151.26-234.49-268.10-306.54-350.48
Accounts Payable --72236-4625134.3493.52106.92122.25139.77
Capital Expenditure -866-1,032-1,463-1,302-1,653-1,841.34-2,105.30-2,407.10-2,752.17-3,146.70
UFCF 269.21482.563,313.093,557.273,480.863,011.033,106.553,551.894,061.064,643.23
WACC
PV UFCF 2,862.472,807.573,051.663,316.973,605.36
SUM PV UFCF 15,644.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.19
Free cash flow (t + 1) 4,736.10
Terminal Value 148,466.98
Present Value of Terminal Value 115,280.96

Intrinsic Value

Enterprise Value 130,924.98
Net Debt 1,310
Equity Value 129,614.98
Shares Outstanding 800
Equity Value Per Share 162.02