PAAS's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 281.09 -- higher than 88% of US-listed equities with positive expected earnings growth.
With a price/earnings ratio of 205.27, Pan American Silver Corp P/E ratio is greater than that of about 96.56% of stocks in our set with positive earnings.
With a year-over-year growth in debt of -34.27%, Pan American Silver Corp's debt growth rate surpasses just 8.28% of about US stocks.
Stocks with similar financial metrics, market capitalization, and price volatility to Pan American Silver Corp are VST, HNP, UHAL, AGFS, and DCP.
Pan American Silver operates and develops, and explores for silver producing properties and assets in Mexico, Peru, Argentina, and Bolivia. The company was founded in 1979 and is based in Vancouver, Canada.
PAAS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Pan American Silver Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Pan American Silver Corp ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2138.83%. In terms of the factors that were most noteworthy in this DCF analysis for PAAS, they are:
The company's balance sheet shows it gets 97% of its capital from equity, and 3% of its capital from debt. Its equity weight surpasses that of 93.55% of free cash flow generating stocks in the Basic Materials sector.
Its compound free cash flow growth rate, as measured over the past 3.73 years, is 1.44% -- higher than 93.66% of stocks in our DCF forecasting set.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than just 10.99% of the free cash flow producing stocks we're observing.
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 PAAS, try BMCH, GMS, VALE, APOG, and USCR.
Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("the Company") will host a call to discuss the Company's approach and performance on environmental, social and governance ("ESG") matters on September 14, 2020 at 11:00 am ET (8:00 am PT). Senior members of the Company's management team will describe the key opportunities and challenges regarding its sustainability strategy, discuss the Company's 2019 Sustainability Report, and respond to questions from investors and analysts.
Source: Pan American Silver Corp. La Arena Mine, Peru. Investment Thesis The Vancouver-based Pan American Silver Corp. (PAAS) released its second quarter of 2020 on August 5, 2020. Let's put it simply, the market did not like it, and the stock started to show weakness and dropped a few days...