First Majestic Silver Corp. Ordinary Shares (Canada) (AG) Company Bio
First Majestic Silver Corporation engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver projects in Mexico. The company was founded in 1979 and is based in Vancouver, Canada.
AG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that First Majestic Silver Corp ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for AG, they are:
The compound growth rate in the free cash flow of First Majestic Silver Corp over the past 3 years is -0.17%; that's better than merely 9.04% of cash flow producing equities in the Basic Materials sector, where it is classified.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 16.6% of the free cash flow producing stocks we're observing.
First Majestic Silver Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.58. This coverage rate is greater than that of merely 18.33% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of First Majestic Silver Corp? See PPIH, ASH, AVD, HBM, and OSN.
Shares of silver and gold miner First Majestic Silver (NYSE: AG) were higher by an impressive 12% or so at roughly 1 p.m. EDT on July 22. The price jump followed a notable advance in the price of silver, which is conveniently included in the precious metals miner's name. Silver is very clearly an important metal for the company, but like most miners it doesn't only produce a single metal and is, thus, not a pure play on silver (despite what its name might imply).
First Majestic Silver: Better Than Expected This is an update on First Majestic Silver (AG), which is a gold & silver miner focused in Mexico, operating the San Dimas mine, the Santa Elena mine, and the La Encantada mine. Production from its assets is estimated to be between 21.4 million...