Key Insights
- The projected fair value for Endeavour Mining is CA$46.89 based on 2 Stage Free Cash Flow to Equity
- Endeavour Mining is estimated to be 49% undervalued based on current share price of CA$24.05
- Analyst price target for EDV is US$39.28 which is 16% below our fair value estimate
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 projecting its future cash flows and then discounting them to today’s value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple!
We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis…
