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 54th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. 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 90% of its capital from equity, and 10% of its capital from debt. Notably, its equity weight is greater than 83.72% of US equities in the Basic Materials sector yielding a positive free cash flow.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than only 20.13% of the free cash flow producing stocks we're observing.
Pan American Silver Corp's effective tax rate, as measured by taxes paid relative to net income, is at 25 -- greater than 89.21% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MLM, ROCK, GFI, IOSP, and RGLD can be thought of as valuation peers to PAAS, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.