Intrinsic value of Fortuna Silver Mines Inc. - FVI

Previous Close

$5.78

  Intrinsic Value

$56.78

stock screener

  Rating & Target

str. buy

+882%

  Value-price divergence*

0%

Previous close

$5.78

 
Intrinsic value

$56.78

 
Up/down potential

+882%

 
Rating

str. buy

 
Value-price divergence*

0%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of FVI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  35.89
  43.30
  39.47
  36.02
  32.92
  30.13
  27.62
  25.35
  23.32
  21.49
  19.84
  18.35
  17.02
  15.82
  14.74
  13.76
  12.89
  12.10
  11.39
  10.75
  10.17
  9.66
  9.19
  8.77
  8.39
  8.06
  7.75
  7.47
  7.23
  7.00
  6.80
Revenue, $m
  284
  407
  568
  772
  1,026
  1,335
  1,704
  2,136
  2,634
  3,201
  3,835
  4,539
  5,312
  6,152
  7,059
  8,030
  9,065
  10,162
  11,319
  12,535
  13,811
  15,144
  16,536
  17,987
  19,496
  21,067
  22,699
  24,396
  26,159
  27,992
  29,896
Variable operating expenses, $m
 
  83
  116
  158
  209
  272
  348
  436
  537
  653
  782
  926
  1,084
  1,255
  1,440
  1,638
  1,849
  2,073
  2,309
  2,557
  2,817
  3,089
  3,373
  3,669
  3,977
  4,298
  4,631
  4,977
  5,336
  5,710
  6,099
Fixed operating expenses, $m
 
  178
  183
  187
  192
  197
  202
  207
  212
  217
  223
  228
  234
  240
  246
  252
  258
  265
  271
  278
  285
  292
  300
  307
  315
  323
  331
  339
  347
  356
  365
Total operating expenses, $m
  218
  261
  299
  345
  401
  469
  550
  643
  749
  870
  1,005
  1,154
  1,318
  1,495
  1,686
  1,890
  2,107
  2,338
  2,580
  2,835
  3,102
  3,381
  3,673
  3,976
  4,292
  4,621
  4,962
  5,316
  5,683
  6,066
  6,464
Operating income, $m
  66
  146
  269
  427
  625
  866
  1,155
  1,494
  1,885
  2,330
  2,830
  3,385
  3,994
  4,657
  5,373
  6,140
  6,957
  7,824
  8,738
  9,700
  10,708
  11,763
  12,863
  14,010
  15,204
  16,447
  17,738
  19,080
  20,475
  21,925
  23,432
EBITDA, $m
  111
  210
  359
  549
  787
  1,077
  1,424
  1,831
  2,301
  2,835
  3,435
  4,101
  4,832
  5,628
  6,486
  7,406
  8,387
  9,426
  10,523
  11,677
  12,886
  14,151
  15,471
  16,847
  18,279
  19,769
  21,318
  22,928
  24,601
  26,340
  28,147
Interest expense (income), $m
  3
  3
  8
  14
  21
  31
  42
  56
  72
  91
  112
  135
  161
  190
  221
  255
  291
  330
  371
  414
  459
  506
  556
  608
  662
  718
  777
  837
  900
  966
  1,034
Earnings before tax, $m
  64
  143
  261
  414
  604
  835
  1,113
  1,438
  1,813
  2,240
  2,719
  3,250
  3,833
  4,467
  5,151
  5,885
  6,666
  7,494
  8,368
  9,286
  10,249
  11,256
  12,307
  13,402
  14,543
  15,729
  16,962
  18,243
  19,575
  20,959
  22,398
Tax expense, $m
  40
  38
  71
  112
  163
  226
  300
  388
  490
  605
  734
  877
  1,035
  1,206
  1,391
  1,589
  1,800
  2,023
  2,259
  2,507
  2,767
  3,039
  3,323
  3,619
  3,926
  4,247
  4,580
  4,926
  5,285
  5,659
  6,047
Net income, $m
  24
  104
  191
  302
  441
  610
  812
  1,050
  1,324
  1,635
  1,985
  2,372
  2,798
  3,261
  3,761
  4,296
  4,866
  5,471
  6,108
  6,779
  7,482
  8,217
  8,984
  9,784
  10,616
  11,482
  12,382
  13,317
  14,290
  15,300
  16,351

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  169
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  761
  848
  1,183
  1,608
  2,138
  2,782
  3,550
  4,451
  5,489
  6,668
  7,991
  9,457
  11,067
  12,817
  14,706
  16,730
  18,885
  21,170
  23,581
  26,115
  28,772
  31,550
  34,450
  37,472
  40,618
  43,889
  47,291
  50,825
  54,499
  58,316
  62,284
Adjusted assets (=assets-cash), $m
  592
  848
  1,183
  1,608
  2,138
  2,782
  3,550
  4,451
  5,489
  6,668
  7,991
  9,457
  11,067
  12,817
  14,706
  16,730
  18,885
  21,170
  23,581
  26,115
  28,772
  31,550
  34,450
  37,472
  40,618
  43,889
  47,291
  50,825
  54,499
  58,316
  62,284
Revenue / Adjusted assets
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
Average production assets, $m
  430
  616
  859
  1,169
  1,554
  2,022
  2,580
  3,234
  3,989
  4,846
  5,807
  6,873
  8,042
  9,314
  10,687
  12,158
  13,724
  15,385
  17,136
  18,978
  20,909
  22,928
  25,036
  27,232
  29,518
  31,895
  34,367
  36,936
  39,605
  42,379
  45,263
Working capital, $m
  147
  -31
  -44
  -59
  -79
  -103
  -131
  -164
  -203
  -246
  -295
  -350
  -409
  -474
  -544
  -618
  -698
  -782
  -872
  -965
  -1,063
  -1,166
  -1,273
  -1,385
  -1,501
  -1,622
  -1,748
  -1,879
  -2,014
  -2,155
  -2,302
Total debt, $m
  55
  136
  243
  379
  548
  754
  999
  1,286
  1,617
  1,993
  2,415
  2,883
  3,396
  3,955
  4,557
  5,203
  5,890
  6,619
  7,388
  8,197
  9,044
  9,931
  10,856
  11,820
  12,823
  13,867
  14,952
  16,079
  17,251
  18,469
  19,734
Total liabilities, $m
  189
  270
  377
  513
  682
  888
  1,133
  1,420
  1,751
  2,127
  2,549
  3,017
  3,530
  4,089
  4,691
  5,337
  6,024
  6,753
  7,522
  8,331
  9,178
  10,065
  10,990
  11,954
  12,957
  14,001
  15,086
  16,213
  17,385
  18,603
  19,868
Total equity, $m
  572
  577
  805
  1,095
  1,456
  1,895
  2,418
  3,031
  3,738
  4,541
  5,442
  6,440
  7,536
  8,728
  10,015
  11,393
  12,861
  14,417
  16,058
  17,784
  19,594
  21,486
  23,461
  25,518
  27,661
  29,889
  32,205
  34,612
  37,114
  39,713
  42,415
Total liabilities and equity, $m
  761
  847
  1,182
  1,608
  2,138
  2,783
  3,551
  4,451
  5,489
  6,668
  7,991
  9,457
  11,066
  12,817
  14,706
  16,730
  18,885
  21,170
  23,580
  26,115
  28,772
  31,551
  34,451
  37,472
  40,618
  43,890
  47,291
  50,825
  54,499
  58,316
  62,283
Debt-to-equity ratio
  0.096
  0.240
  0.300
  0.350
  0.380
  0.400
  0.410
  0.420
  0.430
  0.440
  0.440
  0.450
  0.450
  0.450
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.460
  0.470
  0.470
Adjusted equity ratio
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681
  0.681

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  24
  104
  191
  302
  441
  610
  812
  1,050
  1,324
  1,635
  1,985
  2,372
  2,798
  3,261
  3,761
  4,296
  4,866
  5,471
  6,108
  6,779
  7,482
  8,217
  8,984
  9,784
  10,616
  11,482
  12,382
  13,317
  14,290
  15,300
  16,351
Depreciation, amort., depletion, $m
  45
  64
  90
  122
  162
  211
  269
  337
  415
  505
  605
  716
  838
  970
  1,113
  1,266
  1,430
  1,603
  1,785
  1,977
  2,178
  2,388
  2,608
  2,837
  3,075
  3,322
  3,580
  3,847
  4,126
  4,415
  4,715
Funds from operations, $m
  32
  168
  280
  424
  602
  820
  1,081
  1,386
  1,739
  2,140
  2,590
  3,088
  3,636
  4,231
  4,874
  5,562
  6,296
  7,073
  7,893
  8,756
  9,660
  10,605
  11,592
  12,620
  13,691
  14,804
  15,962
  17,165
  18,415
  19,715
  21,065
Change in working capital, $m
  -39
  -9
  -12
  -16
  -20
  -24
  -28
  -33
  -38
  -44
  -49
  -54
  -59
  -65
  -70
  -75
  -80
  -84
  -89
  -94
  -98
  -103
  -107
  -112
  -116
  -121
  -126
  -131
  -136
  -141
  -147
Cash from operations, $m
  71
  178
  293
  439
  622
  844
  1,109
  1,420
  1,777
  2,183
  2,638
  3,143
  3,695
  4,296
  4,944
  5,637
  6,376
  7,158
  7,983
  8,850
  9,758
  10,708
  11,699
  12,732
  13,807
  14,925
  16,088
  17,296
  18,551
  19,856
  21,212
Maintenance CAPEX, $m
  0
  -45
  -64
  -90
  -122
  -162
  -211
  -269
  -337
  -415
  -505
  -605
  -716
  -838
  -970
  -1,113
  -1,266
  -1,430
  -1,603
  -1,785
  -1,977
  -2,178
  -2,388
  -2,608
  -2,837
  -3,075
  -3,322
  -3,580
  -3,847
  -4,126
  -4,415
New CAPEX, $m
  -54
  -186
  -243
  -310
  -385
  -468
  -558
  -654
  -754
  -857
  -961
  -1,066
  -1,170
  -1,272
  -1,373
  -1,471
  -1,567
  -1,660
  -1,752
  -1,842
  -1,931
  -2,019
  -2,107
  -2,196
  -2,286
  -2,378
  -2,472
  -2,569
  -2,669
  -2,774
  -2,883
Cash from investing activities, $m
  -69
  -231
  -307
  -400
  -507
  -630
  -769
  -923
  -1,091
  -1,272
  -1,466
  -1,671
  -1,886
  -2,110
  -2,343
  -2,584
  -2,833
  -3,090
  -3,355
  -3,627
  -3,908
  -4,197
  -4,495
  -4,804
  -5,123
  -5,453
  -5,794
  -6,149
  -6,516
  -6,900
  -7,298
Free cash flow, $m
  2
  -53
  -15
  40
  115
  214
  340
  497
  686
  911
  1,172
  1,472
  1,810
  2,186
  2,601
  3,053
  3,542
  4,068
  4,628
  5,223
  5,850
  6,511
  7,204
  7,928
  8,684
  9,473
  10,293
  11,147
  12,034
  12,956
  13,914
Issuance/(repayment) of debt, $m
  -2
  81
  107
  136
  169
  205
  245
  287
  331
  376
  422
  468
  513
  558
  602
  646
  688
  729
  769
  809
  848
  886
  925
  964
  1,003
  1,044
  1,085
  1,128
  1,172
  1,218
  1,266
Issuance/(repurchase) of shares, $m
  14
  70
  37
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  12
  151
  144
  136
  169
  205
  245
  287
  331
  376
  422
  468
  513
  558
  602
  646
  688
  729
  769
  809
  848
  886
  925
  964
  1,003
  1,044
  1,085
  1,128
  1,172
  1,218
  1,266
Total cash flow (excl. dividends), $m
  14
  99
  129
  176
  284
  420
  585
  784
  1,017
  1,287
  1,594
  1,940
  2,323
  2,745
  3,203
  3,699
  4,230
  4,797
  5,397
  6,031
  6,698
  7,397
  8,129
  8,892
  9,688
  10,516
  11,378
  12,275
  13,206
  14,174
  15,180
Retained Cash Flow (-), $m
  -215
  -174
  -228
  -290
  -361
  -439
  -523
  -613
  -707
  -803
  -901
  -999
  -1,096
  -1,192
  -1,286
  -1,378
  -1,468
  -1,556
  -1,642
  -1,726
  -1,809
  -1,892
  -1,975
  -2,058
  -2,142
  -2,228
  -2,316
  -2,407
  -2,501
  -2,600
  -2,702
Prev. year cash balance distribution, $m
 
  169
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  93
  -99
  -114
  -76
  -19
  62
  171
  311
  484
  694
  941
  1,227
  1,552
  1,917
  2,321
  2,762
  3,241
  3,755
  4,305
  4,889
  5,505
  6,154
  6,834
  7,546
  8,288
  9,062
  9,867
  10,704
  11,574
  12,478
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  89
  -90
  -99
  -63
  -15
  45
  115
  194
  278
  364
  447
  524
  590
  644
  681
  702
  705
  692
  663
  621
  569
  511
  448
  384
  322
  264
  212
  166
  126
  94
Current shareholders' claim on cash, %
  100
  90.2
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7

Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company's segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company's San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.

FINANCIAL RATIOS  of  Fortuna Silver Mines Inc. (FVI)

Valuation Ratios
P/E Ratio 35.4
Price to Sales 3
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 12
Price to Free Cash Flow 50
Growth Rates
Sales Growth Rate 35.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -29.9%
Cap. Spend. - 3 Yr. Gr. Rate -8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 9.6%
Total Debt to Equity 9.6%
Interest Coverage 22
Management Effectiveness
Return On Assets 3.9%
Ret/ On Assets - 3 Yr. Avg. 2.2%
Return On Total Capital 4.6%
Ret/ On T. Cap. - 3 Yr. Avg. 2.3%
Return On Equity 5.2%
Return On Equity - 3 Yr. Avg. 2.4%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 38.4%
Gross Margin - 3 Yr. Avg. 33.7%
EBITDA Margin 39.4%
EBITDA Margin - 3 Yr. Avg. 29%
Operating Margin 23.2%
Oper. Margin - 3 Yr. Avg. 13.7%
Pre-Tax Margin 22.5%
Pre-Tax Margin - 3 Yr. Avg. 13.1%
Net Profit Margin 8.5%
Net Profit Margin - 3 Yr. Avg. 3.6%
Effective Tax Rate 62.5%
Eff/ Tax Rate - 3 Yr. Avg. -45.1%
Payout Ratio 0%

FVI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FVI stock intrinsic value calculation we used $284 million for the last fiscal year's total revenue generated by Fortuna Silver Mines Inc.. The default revenue input number comes from 2016 income statement of Fortuna Silver Mines Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FVI stock valuation model: a) initial revenue growth rate of 43.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for FVI is calculated based on our internal credit rating of Fortuna Silver Mines Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Fortuna Silver Mines Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FVI stock the variable cost ratio is equal to 20.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $174 million in the base year in the intrinsic value calculation for FVI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.6% for Fortuna Silver Mines Inc..

Corporate tax rate of 27% is the nominal tax rate for Fortuna Silver Mines Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FVI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FVI are equal to 151.4%.

Life of production assets of 9.6 years is the average useful life of capital assets used in Fortuna Silver Mines Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FVI is equal to -7.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $572 million for Fortuna Silver Mines Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 158.729 million for Fortuna Silver Mines Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Fortuna Silver Mines Inc. at the current share price and the inputted number of shares is $0.9 billion.

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Financial statements of FVI
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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