Newmont Mining - Comparative Multiple Analysis

Newmont Mining (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Newmont Mining

WikiWealth compares Newmont Mining's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Newmont Mining's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Newmont Mining.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Newmont Mining's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Newmont Mining's Analysis


How does this work? The Comparative Investment Analysis determines the value of Newmont Mining by comparing Newmont Mining financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Newmont Mining.

See the Newmont Mining cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Newmont Mining.

Also, see the Newmont Mining's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Newmont Mining's valuation conclusion for a quick summary.