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).
A comprehensive analysis of the earnings data from 2019 to 2023 reveals a severe and accelerating decline in financial performance across all reported metrics. The transition from strong profitability in the early part of the period to significant net losses by 2023 indicates a substantial deterioration in the organization's economic results.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization show a continuous downward trend, falling from US$ 6,049 million in 2019 to US$ 383 million in 2023. The most acute contraction occurred between 2022 and 2023, where EBITDA decreased by approximately 84%, suggesting a critical reduction in operational cash flow generation.
- Net Income and Profitability Transition
- Net income attributable to stockholders experienced a sharp reversal, moving from a peak of US$ 2,829 million in 2020 to a loss of US$ 2,494 million in 2023. The shift into negative territory began in 2022, with the deficit expanding significantly in the following year.
- Comparison of Operating and Net Earnings
- A widening divergence is observed between EBITDA and net income. While EBITDA remained positive through 2023, EBIT, EBT, and net income all turned negative in the final year of the period. This pattern indicates that while core operations continued to generate a small positive margin before non-cash charges, the impact of depreciation, amortization, and other expenses completely offset these gains, resulting in a net loss.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT mirrored the overall decline, dropping from US$ 4,089 million in 2019 to a deficit of US$ 1,725 million in 2023. The precipitous drop from 2021 to 2023 underscores a collapse in operating profit before the application of financing and taxation costs.
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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. | 13.43 |
| EV/EBITDA, Industry | |
| Materials | 17.59 |
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 | — | — | |
| EV/EBITDA, Industry | ||||||
| Materials | 15.61 | 14.17 | 13.46 | — | — | |
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.
A significant expansion in the Enterprise Value to EBITDA ratio is observed between 2019 and 2023, indicating a widening gap between the total valuation of the entity and its operational cash flow generation. While the enterprise value remained relatively stable over the five-year period, a precipitous decline in EBITDA has driven the valuation multiple to an anomalous level.
- Enterprise Value (EV) Trends
- The enterprise value exhibited moderate volatility, peaking in 2021 at 53,895 million before contracting to 37,687 million in 2022. By the end of 2023, a slight recovery was noted, with the value rising to 42,606 million. This indicates that the market's overall valuation of the business assets and debt has not deviated drastically from its 2019 baseline of 44,149 million.
- EBITDA Performance
- A severe downward trajectory is evident in the EBITDA figures. From a high of 6,049 million in 2019, earnings before interest, tax, depreciation, and amortization declined steadily to 3,871 million in 2021 and further to 2,468 million in 2022. A critical collapse occurred in 2023, where EBITDA fell to 383 million, representing a substantial erosion of operational profitability.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio transitioned from a conservative 7.30 in 2019 to an extreme 111.24 in 2023. The ratio remained within a standard range through 2020 (8.02) but began to climb sharply as earnings decoupled from the enterprise value in 2021 (13.92) and 2022 (15.27). The exponential surge in 2023 is a direct result of the minimal EBITDA base relative to the maintained enterprise value, suggesting a significant misalignment between current earnings power and total valuation.
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