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:
Below please find a table outlining a discounted cash flow forecast for PAAS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Pan American Silver Corp ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2304.33%. As for the metrics that stood out in our discounted cash flow analysis of Pan American Silver Corp, consider:
The compound growth rate in the free cash flow of Pan American Silver Corp over the past 3.98 years is 1.42%; that's higher than 95.98% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than just 10.37% of the free cash flow producing stocks we're observing.
PAAS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 49.2% 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 PAAS, try AVTR, DOW, VEDL, FRTA, and TGLS.