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. More precisely, our analysis suggests the stock is undervalued by approximately 2328.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Pan American Silver Corp ended up being:
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 95.95% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 10.37% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 49.11% of tickers in our DCF set.
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 AVTR, DOW, FRTA, VEDL, and TGLS.
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Source: Pan American Silver Corp. Investment Thesis The Vancouver-based Pan American Silver Corp. (NASDAQ: PAAS) released its 2021 guidance and preliminary 2020 production results on Jan. 19, 2021. The fourth quarter preliminary gold production was down 12.1%, and silver production was down 26.9% from the same quarter a year ago,...
The Q4 Earnings Season is finally set to begin next month for the Gold Miners Index (GDX), and one of the first names to report its preliminary production results is Pan American Silver (PAAS). Unfortunately, the company posted sizeable misses on both silver (SLV) and gold (GLD) production relative to...