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 51th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 15.17%. In terms of the factors that were most noteworthy in this DCF analysis for PAAS, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 95. Notably, its equity weight is greater than 89.1% of US equities in the Basic Materials sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately just 13.41% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Pan American Silver Corp's effective tax rate, as measured by taxes paid relative to net income, is at 39 -- greater than 93% of US stocks with positive free cash flow.
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 Pan American Silver Corp? See LEU, BHP, CCF, SCL, and HWKN.
Pan American Silver (PAAS) has been a top performer over the last year, as the shares have increased 130% compared to a 36% increase in the Global X Silver Miners ETF (SIL). PAAS also accounts for 10% of SIL; the outperformance of the stock is greater when adjusting for its...
Silver stocks are driven by the metal's use in a wide range of industrial processes, and its popularity as a safe haven asset. Silver stocks, which are primarily mining companies, also are driven by the yield on bank CDs or Treasury bonds. All silver companies in this story are headquartered in Canada and their primary trading venue is the Toronto Stock Exchange, but they also trade on U.S. exchanges.
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