Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Newmont Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
An analysis of the cash flow trajectory reveals a peak in financial performance during the 2020 fiscal year, followed by a consistent decline in both operational cash generation and equity-available cash flow through 2023.
- Net Cash Provided by Operating Activities
- Cash flow from operations exhibited significant volatility, increasing from US$ 2,876 million in 2019 to a peak of US$ 4,890 million in 2020. Subsequent years show a steady downward trend, with values decreasing annually to reach US$ 2,754 million by the end of 2023, representing a reduction of approximately 43.6% from the 2020 peak.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a more pronounced cycle, surging from US$ 172 million in 2019 to a maximum of US$ 3,347 million in 2020. This figure declined sharply over the subsequent three years, falling to US$ 2,150 million in 2021, US$ 912 million in 2022, and nearly depleting to US$ 21 million by the end of 2023.
- Analysis of FCFE Convergence
- The variance between net cash provided by operating activities and FCFE has expanded significantly over the observed period. In 2020, FCFE represented approximately 68.4% of operating cash flow. By 2023, FCFE plummeted to approximately 0.76% of operating cash flow. This widening gap suggests a substantial increase in capital expenditures or net debt repayments relative to the cash generated from core operations.
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Price to FCFE Ratio, Current
Newmont Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,153,140,195 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 21) |
| FCFE per share | 0.02 |
| Current share price (P) | 42.26 |
| Valuation Ratio | |
| P/FCFE | 2,320.56 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Freeport-McMoRan Inc. | 64.47 |
| P/FCFE, Industry | |
| Materials | 53.30 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Newmont Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,152,551,607 | 793,794,062 | 792,502,327 | 800,314,223 | 807,583,184 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 21) | 912) | 2,150) | 3,347) | 172) | |
| FCFE per share3 | 0.02 | 1.15 | 2.71 | 4.18 | 0.21 | |
| Share price1, 4 | 31.25 | 44.26 | 66.72 | 57.36 | 48.10 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 1,715.11 | 38.52 | 24.59 | 13.72 | 225.84 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Freeport-McMoRan Inc. | — | 20.95 | 11.90 | — | — | |
| P/FCFE, Industry | ||||||
| Materials | 45.58 | 18.95 | 19.23 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 21,000,000 ÷ 1,152,551,607 = 0.02
4 Closing price as at the filing date of Newmont Corp. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 31.25 ÷ 0.02 = 1,715.11
6 Click competitor name to see calculations.
The valuation of the company relative to its Free Cash Flow to Equity (FCFE) exhibits extreme volatility and a significant divergence between share price and cash flow generation over the observed five-year period.
- Share Price Trends
- A period of growth was observed from 2019 to 2021, with the share price peaking at 66.72 US$. This was followed by a consistent decline through 2023, ending at a period low of 31.25 US$.
- FCFE per Share Performance
- Free Cash Flow to Equity per share experienced a sharp increase in 2020, reaching 4.18 US$. However, a sustained downward trend followed, with values decreasing to 2.71 US$ in 2021, 1.15 US$ in 2022, and nearly eroding by 2023, reaching 0.02 US$.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio demonstrates extreme fluctuations driven primarily by the volatility of the denominator. The ratio reached an anomalous peak of 1,715.11 in 2023, coinciding with the near-zero FCFE per share. A similar outlier occurred in 2019 with a ratio of 225.84. The most stable valuation period occurred between 2020 and 2022, where the ratio ranged from 13.72 to 38.52, reflecting a period of more robust cash flow generation relative to the market price.
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