Kirkland Lake Gold Ltd. Common Shares (KL) Company Bio
Kirkland Lake Gold Ltd. engages in the exploration and development of gold properties. The company owns and operates five underground gold mines, including the Macassa mine, the Holt mine, and the Taylor mine in Ontario, Canada; and the Fosterville Mine in Victoria and the Cosmo Mine in Northern Territory, Australia, as well as four milling facilities in Canada and Australia. The company was founded in 1983 and is based in Toronto, Canada.
KL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Kirkland Lake Gold Ltd. To summarize, we found that Kirkland Lake Gold Ltd ranked in the 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 264%. As for the metrics that stood out in our discounted cash flow analysis of Kirkland Lake Gold Ltd, consider:
The company's balance sheet shows it gets 100% of its capital from equity, and 0% of its capital from debt. Notably, its equity weight is greater than 97.1% of US equities in the Basic Materials sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 3.49% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
KL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 62.79% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KL, try NX, CRH, RIO, RS, and OR.