Endeavour Mining plc's (TSE:EDV) Intrinsic Value Is Potentially 68% Above Its Share Price

Valuation of Endeavour Mining:

• Fair value estimate using the 2 Stage Free Cash Flow to Equity is CA$50.08.
• Current share price suggests it may be 40% undervalued.
• Analyst price target is US$39.12, 22% less than the fair value estimate.
• Valuation done using Discounted Cash Flow (DCF) model.
• Total Equity Value estimated at US$9.0 billion, indicating a 40% discount to the current share price.

SWOT Analysis for Endeavour Mining:

• Strength: Debt is not considered a risk.
• Weakness: Low dividend compared to top 25% in the market.
• Opportunity: Expected to break even next year, good value based on P/S ratio and fair value.
• Threat: Paying dividends despite being unprofitable.

Assumptions in DCF Model:

• Discount rate used is 9.2% based on cost of equity.
• Beta of 1.294 used for volatility measurement.
• DCF does not consider industry cyclicality or future capital requirements.

Moving On:

• DCF model is not the sole piece of analysis needed.
• Risks, management, and high-quality alternatives should also be considered.
• Explore reasons for share price below intrinsic value.

Feedback and Disclaimer:

• Simply Wall St provides unbiased analysis based on historical data and forecasts.
• Articles are not financial advice.
• Readers encouraged to conduct their own evaluations.
• Contact for feedback or concerns.