Key Insights
- Using the 2 Stage Free Cash Flow to Equity, Endeavour Mining fair value estimate is CA$52.80
- Endeavour Mining’s CA$30.89 share price signals that it might be 41% undervalued
- The US$39.03 analyst price target for EDV is 26% less than our estimate of fair value
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Endeavour Mining plc (TSE:EDV) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today’s value. This will be done using the Discounted Cash Flow (DCF) model. Don’t get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
