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GuruFocus has detected 2 Warning Signs with Newmont Mining Corp $NEM.
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Newmont Mining Corp (NYSE:NEM)
EV-to-EBIT
62.77 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Newmont Mining Corp's enterprise value is $20,590 Mil. Newmont Mining Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $328 Mil. Therefore, Newmont Mining Corp's EV/EBIT ratio for today is 62.77.

NEM' s EV-to-EBIT Range Over the Past 10 Years
Min: -113.4   Max: 93.4
Current: 62.76

-113.4
93.4

During the past 13 years, the highest EV/EBIT Ratio of Newmont Mining Corp was 93.40. The lowest was -113.40. And the median was 14.20.

NEM's EV-to-EBIT is ranked lower than
63% of the 904 Companies
in the Global Gold industry.

( Industry Median: 20.02 vs. NEM: 62.76 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Newmont Mining Corp's enterprise value for the quarter that ended in Mar. 2017 was $20,319 Mil. Newmont Mining Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $328 Mil. Newmont Mining Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 1.61%.


Definition

Newmont Mining Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=20589.996/328
=62.77

Newmont Mining Corp's current Enterprise Value is $20,590 Mil.
Newmont Mining Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 475 (Jun. 2016 ) + 291 (Sep. 2016 ) + -724 (Dec. 2016 ) + 286 (Mar. 2017 ) = $328 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Newmont Mining Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=328/20318.704
=1.61 %

Newmont Mining Corp's Enterprise Value for the quarter that ended in Mar. 2017 was $20,319 Mil.
Newmont Mining Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 475 (Jun. 2016 ) + 291 (Sep. 2016 ) + -724 (Dec. 2016 ) + 286 (Mar. 2017 ) = $328 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Newmont Mining Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -101.6214.848.767.6117.059.12-5.8614.2616.7985.48

Newmont Mining Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 14.2612.0310.968.2116.7930.7236.1331.5385.4861.95
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