Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Newmont Corp., EBITDA 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).
- Net Income (Loss) Attributable to Newmont Stockholders
- Net income demonstrated a strong performance from 2019 through 2020, with marginal growth from 2,805 million USD to 2,829 million USD. However, 2021 marked a significant decline to 1,166 million USD, followed by a switch to negative earnings in 2022 and 2023, reaching losses of 429 million USD and 2,494 million USD respectively. This indicates a marked deterioration in profitability over the analyzed period.
- Earnings Before Tax (EBT)
- The earnings before tax followed a similar trajectory to net income. Starting at 3,788 million USD in 2019, it decreased continuously each year, falling sharply from 3,332 million USD in 2020 to just 56 million USD in 2022, and turning negative to -1,968 million USD in 2023. This trend reflects increasing challenges in generating taxable earnings.
- Earnings Before Interest and Tax (EBIT)
- EBIT figures align with the overall decline in profitability, dropping from 4,089 million USD in 2019 to 3,640 million USD in 2020, before plunging to 1,548 million USD in 2021. The decline accelerated in 2022 to 283 million USD, and eventually turned negative to -1,725 million USD in 2023. The progression illustrates weakening core operational profitability.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- Despite EBITDA remaining positive throughout, a significant downward trend is observed. Starting at 6,049 million USD in 2019, it slightly decreased to 5,940 million USD in 2020. From 2021 onward, EBITDA fell sharply to 3,871 million USD, then further reduced to 2,468 million USD in 2022, and near-break-even at 383 million USD in 2023. This trend suggests a diminishing capacity to generate cash flows from core business activities before accounting for depreciation and amortization.
- Overall Analysis
- The financial data reveals a consistent deterioration in profitability and earnings quality over the five-year span. Initial strong performance in 2019 and 2020 gave way to steep declines in all key earnings metrics from 2021 onward. The shift to negative net income by 2022 and worsening thereafter indicates substantial operational or market challenges impacting financial health. Although EBITDA remains positive, its steep decline signals potential cash flow stress in the near term if this trajectory continues.
Enterprise Value to EBITDA Ratio, Current
Newmont Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 55,321) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 383) |
| Valuation Ratio | |
| EV/EBITDA | 144.44 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Freeport-McMoRan Inc. | 8.55 |
| EV/EBITDA, Industry | |
| Materials | 16.66 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Newmont Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 42,606) | 37,687) | 53,895) | 47,615) | 44,149) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 383) | 2,468) | 3,871) | 5,940) | 6,049) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 111.24 | 15.27 | 13.92 | 8.02 | 7.30 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Freeport-McMoRan Inc. | 8.11 | 7.74 | 7.20 | 15.89 | — | |
| EV/EBITDA, Industry | ||||||
| Materials | 15.61 | 14.17 | 13.46 | 17.97 | — | |
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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 42,606 ÷ 383 = 111.24
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an increasing trend from 2019 through 2021, rising from $44,149 million to $53,895 million. However, there was a substantial decline in 2022, bringing the EV down to $37,687 million, before a moderate recovery to $42,606 million in 2023. This pattern indicates initial growth, followed by a significant reduction and partial rebound.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA remained relatively stable between 2019 and 2020, with a slight decrease from $6,049 million to $5,940 million. This was followed by a sharp decline in 2021 to $3,871 million, continuing downward to $2,468 million in 2022, and reaching a notably low level of $383 million in 2023. This downward trajectory suggests a sustained and significant impairment in operational profitability over the analyzed period.
- EV/EBITDA Ratio
- The EV/EBITDA ratio increased consistently from 7.3 in 2019 to 15.27 in 2022, reflecting a growing disparity as EBITDA decreased more rapidly relative to enterprise value. By 2023, the ratio escalated dramatically to 111.24, indicating an extreme valuation premium relative to earnings before interest, tax, depreciation, and amortization, largely driven by the collapse in EBITDA.