Intrinsic value of Pan American Silver Corp. - PAAS

Previous Close

$20.43

  Intrinsic Value

$3.02

stock screener

  Rating & Target

str. sell

-85%

  Value-price divergence*

0%

Previous close

$20.43

 
Intrinsic value

$3.02

 
Up/down potential

-85%

 
Rating

str. sell

 
Value-price divergence*

0%

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

We calculate the intrinsic value of PAAS 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 3.2

 

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, %
  14.80
  25.20
  23.18
  21.36
  19.73
  18.25
  16.93
  15.74
  14.66
  13.70
  12.83
  12.04
  11.34
  10.71
  10.13
  9.62
  9.16
  8.74
  8.37
  8.03
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
  6.31
  6.17
  6.06
  5.95
Revenue, $m
  1,047
  1,311
  1,615
  1,960
  2,346
  2,774
  3,244
  3,755
  4,305
  4,895
  5,522
  6,187
  6,889
  7,627
  8,399
  9,208
  10,051
  10,930
  11,844
  12,796
  13,785
  14,812
  15,880
  16,990
  18,144
  19,344
  20,591
  21,890
  23,241
  24,649
  26,116
Variable operating expenses, $m
 
  1,756
  2,163
  2,626
  3,143
  3,717
  4,346
  5,030
  5,767
  6,557
  7,398
  8,289
  9,229
  10,217
  11,252
  12,335
  13,464
  14,642
  15,867
  17,141
  18,466
  19,843
  21,274
  22,761
  24,306
  25,913
  27,584
  29,324
  31,134
  33,020
  34,985
Fixed operating expenses, $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
Total operating expenses, $m
  798
  1,756
  2,163
  2,626
  3,143
  3,717
  4,346
  5,030
  5,767
  6,557
  7,398
  8,289
  9,229
  10,217
  11,252
  12,335
  13,464
  14,642
  15,867
  17,141
  18,466
  19,843
  21,274
  22,761
  24,306
  25,913
  27,584
  29,324
  31,134
  33,020
  34,985
Operating income, $m
  249
  -446
  -549
  -666
  -797
  -943
  -1,102
  -1,276
  -1,462
  -1,663
  -1,876
  -2,101
  -2,340
  -2,590
  -2,853
  -3,127
  -3,413
  -3,712
  -4,023
  -4,346
  -4,682
  -5,031
  -5,393
  -5,770
  -6,162
  -6,569
  -6,993
  -7,434
  -7,893
  -8,371
  -8,869
EBITDA, $m
  406
  -249
  -306
  -372
  -445
  -527
  -616
  -713
  -817
  -929
  -1,048
  -1,174
  -1,308
  -1,448
  -1,594
  -1,748
  -1,908
  -2,075
  -2,248
  -2,429
  -2,617
  -2,812
  -3,014
  -3,225
  -3,444
  -3,672
  -3,909
  -4,155
  -4,412
  -4,679
  -4,957
Interest expense (income), $m
  3
  2
  10
  18
  27
  38
  50
  63
  77
  92
  109
  126
  144
  164
  184
  205
  228
  251
  275
  300
  327
  354
  382
  412
  442
  474
  507
  542
  578
  615
  654
Earnings before tax, $m
  238
  -448
  -558
  -684
  -825
  -981
  -1,152
  -1,338
  -1,540
  -1,755
  -1,984
  -2,227
  -2,484
  -2,754
  -3,037
  -3,332
  -3,641
  -3,963
  -4,298
  -4,646
  -5,008
  -5,385
  -5,776
  -6,182
  -6,605
  -7,044
  -7,501
  -7,976
  -8,471
  -8,986
  -9,523
Tax expense, $m
  100
  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
Net income, $m
  135
  -448
  -558
  -684
  -825
  -981
  -1,152
  -1,338
  -1,540
  -1,755
  -1,984
  -2,227
  -2,484
  -2,754
  -3,037
  -3,332
  -3,641
  -3,963
  -4,298
  -4,646
  -5,008
  -5,385
  -5,776
  -6,182
  -6,605
  -7,044
  -7,501
  -7,976
  -8,471
  -8,986
  -9,523

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  294
  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
  2,565
  2,843
  3,503
  4,251
  5,089
  6,018
  7,037
  8,144
  9,338
  10,617
  11,979
  13,422
  14,944
  16,544
  18,220
  19,973
  21,802
  23,709
  25,693
  27,756
  29,902
  32,131
  34,448
  36,855
  39,358
  41,960
  44,667
  47,483
  50,415
  53,468
  56,651
Adjusted assets (=assets-cash), $m
  2,271
  2,843
  3,503
  4,251
  5,089
  6,018
  7,037
  8,144
  9,338
  10,617
  11,979
  13,422
  14,944
  16,544
  18,220
  19,973
  21,802
  23,709
  25,693
  27,756
  29,902
  32,131
  34,448
  36,855
  39,358
  41,960
  44,667
  47,483
  50,415
  53,468
  56,651
Revenue / Adjusted assets
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
  0.461
Average production assets, $m
  1,600
  2,003
  2,467
  2,994
  3,585
  4,239
  4,957
  5,737
  6,578
  7,479
  8,438
  9,454
  10,527
  11,653
  12,834
  14,069
  15,358
  16,701
  18,098
  19,552
  21,063
  22,633
  24,265
  25,961
  27,724
  29,557
  31,463
  33,447
  35,513
  37,664
  39,905
Working capital, $m
  579
  363
  447
  543
  650
  769
  899
  1,040
  1,192
  1,356
  1,530
  1,714
  1,908
  2,113
  2,327
  2,551
  2,784
  3,028
  3,281
  3,544
  3,818
  4,103
  4,399
  4,706
  5,026
  5,358
  5,704
  6,063
  6,438
  6,828
  7,234
Total debt, $m
  59
  223
  418
  639
  887
  1,162
  1,464
  1,792
  2,145
  2,524
  2,927
  3,354
  3,804
  4,278
  4,774
  5,293
  5,835
  6,399
  6,986
  7,597
  8,232
  8,892
  9,578
  10,290
  11,031
  11,801
  12,602
  13,436
  14,304
  15,208
  16,150
Total liabilities, $m
  678
  842
  1,037
  1,258
  1,506
  1,781
  2,083
  2,411
  2,764
  3,143
  3,546
  3,973
  4,423
  4,897
  5,393
  5,912
  6,454
  7,018
  7,605
  8,216
  8,851
  9,511
  10,197
  10,909
  11,650
  12,420
  13,221
  14,055
  14,923
  15,827
  16,769
Total equity, $m
  1,887
  2,002
  2,466
  2,993
  3,583
  4,237
  4,954
  5,734
  6,574
  7,475
  8,433
  9,449
  10,520
  11,647
  12,827
  14,061
  15,349
  16,691
  18,088
  19,540
  21,051
  22,620
  24,251
  25,946
  27,708
  29,540
  31,445
  33,428
  35,492
  37,642
  39,882
Total liabilities and equity, $m
  2,565
  2,844
  3,503
  4,251
  5,089
  6,018
  7,037
  8,145
  9,338
  10,618
  11,979
  13,422
  14,943
  16,544
  18,220
  19,973
  21,803
  23,709
  25,693
  27,756
  29,902
  32,131
  34,448
  36,855
  39,358
  41,960
  44,666
  47,483
  50,415
  53,469
  56,651
Debt-to-equity ratio
  0.031
  0.110
  0.170
  0.210
  0.250
  0.270
  0.300
  0.310
  0.330
  0.340
  0.350
  0.350
  0.360
  0.370
  0.370
  0.380
  0.380
  0.380
  0.390
  0.390
  0.390
  0.390
  0.390
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
Adjusted equity ratio
  0.701
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704
  0.704

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  135
  -448
  -558
  -684
  -825
  -981
  -1,152
  -1,338
  -1,540
  -1,755
  -1,984
  -2,227
  -2,484
  -2,754
  -3,037
  -3,332
  -3,641
  -3,963
  -4,298
  -4,646
  -5,008
  -5,385
  -5,776
  -6,182
  -6,605
  -7,044
  -7,501
  -7,976
  -8,471
  -8,986
  -9,523
Depreciation, amort., depletion, $m
  157
  197
  242
  294
  352
  416
  486
  563
  645
  734
  828
  927
  1,032
  1,142
  1,258
  1,379
  1,506
  1,637
  1,774
  1,917
  2,065
  2,219
  2,379
  2,545
  2,718
  2,898
  3,085
  3,279
  3,482
  3,693
  3,912
Funds from operations, $m
  260
  -251
  -316
  -390
  -473
  -565
  -666
  -776
  -894
  -1,021
  -1,157
  -1,300
  -1,452
  -1,611
  -1,778
  -1,953
  -2,135
  -2,325
  -2,523
  -2,729
  -2,943
  -3,166
  -3,397
  -3,637
  -3,886
  -4,146
  -4,416
  -4,697
  -4,989
  -5,294
  -5,611
Change in working capital, $m
  -30
  73
  84
  96
  107
  119
  130
  141
  152
  163
  174
  184
  194
  204
  214
  224
  234
  243
  253
  264
  274
  285
  296
  307
  320
  332
  346
  360
  374
  390
  406
Cash from operations, $m
  290
  -324
  -400
  -485
  -580
  -683
  -796
  -917
  -1,047
  -1,185
  -1,331
  -1,485
  -1,646
  -1,815
  -1,992
  -2,177
  -2,369
  -2,569
  -2,777
  -2,993
  -3,217
  -3,450
  -3,693
  -3,944
  -4,206
  -4,478
  -4,762
  -5,056
  -5,364
  -5,684
  -6,017
Maintenance CAPEX, $m
  0
  -157
  -196
  -242
  -294
  -351
  -416
  -486
  -562
  -645
  -733
  -827
  -927
  -1,032
  -1,142
  -1,258
  -1,379
  -1,506
  -1,637
  -1,774
  -1,917
  -2,065
  -2,219
  -2,379
  -2,545
  -2,718
  -2,898
  -3,085
  -3,279
  -3,482
  -3,693
New CAPEX, $m
  -274
  -403
  -464
  -527
  -591
  -654
  -718
  -780
  -841
  -901
  -959
  -1,016
  -1,072
  -1,127
  -1,181
  -1,235
  -1,289
  -1,343
  -1,398
  -1,454
  -1,511
  -1,570
  -1,632
  -1,696
  -1,763
  -1,833
  -1,906
  -1,984
  -2,065
  -2,151
  -2,242
Cash from investing activities, $m
  -189
  -560
  -660
  -769
  -885
  -1,005
  -1,134
  -1,266
  -1,403
  -1,546
  -1,692
  -1,843
  -1,999
  -2,159
  -2,323
  -2,493
  -2,668
  -2,849
  -3,035
  -3,228
  -3,428
  -3,635
  -3,851
  -4,075
  -4,308
  -4,551
  -4,804
  -5,069
  -5,344
  -5,633
  -5,935
Free cash flow, $m
  101
  -884
  -1,061
  -1,254
  -1,464
  -1,689
  -1,929
  -2,183
  -2,450
  -2,730
  -3,023
  -3,328
  -3,645
  -3,974
  -4,316
  -4,670
  -5,037
  -5,417
  -5,812
  -6,221
  -6,645
  -7,086
  -7,543
  -8,019
  -8,514
  -9,029
  -9,566
  -10,125
  -10,708
  -11,316
  -11,951
Issuance/(repayment) of debt, $m
  -26
  169
  195
  221
  248
  275
  302
  328
  353
  379
  403
  427
  450
  474
  496
  519
  541
  564
  587
  611
  635
  660
  686
  713
  741
  770
  801
  834
  868
  904
  942
Issuance/(repurchase) of shares, $m
  3
  852
  1,022
  1,211
  1,415
  1,635
  1,869
  2,118
  2,380
  2,655
  2,943
  3,243
  3,555
  3,880
  4,217
  4,566
  4,929
  5,305
  5,695
  6,099
  6,518
  6,954
  7,407
  7,877
  8,366
  8,876
  9,406
  9,959
  10,535
  11,136
  11,764
Cash from financing (excl. dividends), $m  
  -28
  1,021
  1,217
  1,432
  1,663
  1,910
  2,171
  2,446
  2,733
  3,034
  3,346
  3,670
  4,005
  4,354
  4,713
  5,085
  5,470
  5,869
  6,282
  6,710
  7,153
  7,614
  8,093
  8,590
  9,107
  9,646
  10,207
  10,793
  11,403
  12,040
  12,706
Total cash flow (excl. dividends), $m
  73
  136
  157
  178
  199
  221
  242
  263
  283
  303
  323
  342
  361
  379
  397
  415
  433
  452
  470
  489
  508
  528
  549
  571
  593
  617
  641
  667
  695
  724
  754
Retained Cash Flow (-), $m
  -134
  -852
  -1,022
  -1,211
  -1,415
  -1,635
  -1,869
  -2,118
  -2,380
  -2,655
  -2,943
  -3,243
  -3,555
  -3,880
  -4,217
  -4,566
  -4,929
  -5,305
  -5,695
  -6,099
  -6,518
  -6,954
  -7,407
  -7,877
  -8,366
  -8,876
  -9,406
  -9,959
  -10,535
  -11,136
  -11,764
Prev. year cash balance distribution, $m
 
  289
  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
 
  -426
  -866
  -1,033
  -1,216
  -1,414
  -1,628
  -1,855
  -2,097
  -2,352
  -2,620
  -2,901
  -3,195
  -3,501
  -3,820
  -4,151
  -4,495
  -4,853
  -5,224
  -5,610
  -6,010
  -6,426
  -6,858
  -7,307
  -7,773
  -8,259
  -8,765
  -9,291
  -9,840
  -10,412
  -11,010
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
 
  -409
  -793
  -899
  -1,001
  -1,096
  -1,181
  -1,253
  -1,311
  -1,351
  -1,374
  -1,378
  -1,363
  -1,331
  -1,282
  -1,219
  -1,142
  -1,056
  -962
  -864
  -764
  -665
  -569
  -479
  -396
  -321
  -256
  -199
  -152
  -114
  -83
Current shareholders' claim on cash, %
  100
  76.0
  58.3
  45.2
  35.3
  27.8
  22.0
  17.6
  14.1
  11.4
  9.2
  7.5
  6.1
  5.0
  4.1
  3.4
  2.8
  2.4
  2.0
  1.6
  1.4
  1.1
  1.0
  0.8
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2

FINANCIAL RATIOS  of  Pan American Silver Corp. (PAAS)

Valuation Ratios
P/E Ratio 23.1
Price to Sales 3
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow 194.5
Growth Rates
Sales Growth Rate 14.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 38.4%
Cap. Spend. - 3 Yr. Gr. Rate 5%
Financial Strength
Quick Ratio 59
Current Ratio 0
LT Debt to Equity 2.9%
Total Debt to Equity 3.1%
Interest Coverage 80
Management Effectiveness
Return On Assets 5.6%
Ret/ On Assets - 3 Yr. Avg. -9.6%
Return On Total Capital 7.1%
Ret/ On T. Cap. - 3 Yr. Avg. -12.1%
Return On Equity 7.4%
Return On Equity - 3 Yr. Avg. -12.5%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 25.7%
Gross Margin - 3 Yr. Avg. 7.4%
EBITDA Margin 38%
EBITDA Margin - 3 Yr. Avg. -12.8%
Operating Margin 23.8%
Oper. Margin - 3 Yr. Avg. -31.5%
Pre-Tax Margin 22.7%
Pre-Tax Margin - 3 Yr. Avg. -32.3%
Net Profit Margin 12.9%
Net Profit Margin - 3 Yr. Avg. -31.1%
Effective Tax Rate 42%
Eff/ Tax Rate - 3 Yr. Avg. 19.5%
Payout Ratio 7.4%

PAAS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PAAS stock intrinsic value calculation we used $1047 million for the last fiscal year's total revenue generated by Pan American Silver Corp.. The default revenue input number comes from 2016 income statement of Pan American Silver Corp.. 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 PAAS stock valuation model: a) initial revenue growth rate of 25.2% 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 PAAS is calculated based on our internal credit rating of Pan American Silver Corp., 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 Pan American Silver Corp..
    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 PAAS stock the variable cost ratio is equal to 134%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for PAAS 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 4.3% for Pan American Silver Corp..

Corporate tax rate of 27% is the nominal tax rate for Pan American Silver Corp.. 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 PAAS 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 PAAS are equal to 152.8%.

Life of production assets of 10.2 years is the average useful life of capital assets used in Pan American Silver Corp. 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 PAAS is equal to 27.7%. 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 - $1887 million for Pan American Silver Corp. - 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 155.8 million for Pan American Silver Corp. 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 Pan American Silver Corp. at the current share price and the inputted number of shares is $3.2 billion.

RELATED COMPANIES Price Int.Val. Rating
FR First Majestic 9.84 1.31  str.sell
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Stock chart of PAAS Financial statements of PAAS
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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