Discounted Cash Flow (DCF) Analysis Levered

Fortuna Silver Mines Inc. (FSM)

$2.15

-0.15 (-6.52%)
All numbers are in Millions, Currency in USD
Stock DCF: -10.54 | 2.15 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 268.11263.30257.19278.97599.85778.881,011.331,313.161,705.082,213.95
Revenue (%)
Operating Cash Flow 70.2083.4663.0193.39147.14218.68283.95368.69478.72621.60
Operating Cash Flow (%)
Capital Expenditure -47.06-61.11-195.66-114.33-152.29-285.39-370.57-481.16-624.77-811.23
Capital Expenditure (%)
Free Cash Flow 23.1422.35-132.65-20.94-5.15-66.71-86.62-112.47-146.04-189.63

Weighted Average Cost Of Capital

Share price $ 2.15
Beta 1.268
Diluted Shares Outstanding 249.44
Cost of Debt
Tax Rate 46.00
After-tax Cost of Debt 4.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.684
Total Debt 186.89
Total Equity 536.30
Total Capital 723.20
Debt Weighting 25.84
Equity Weighting 74.16
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 268.11263.30257.19278.97599.85778.881,011.331,313.161,705.082,213.95
Operating Cash Flow 70.2083.4663.0193.39147.14218.68283.95368.69478.72621.60
Capital Expenditure -47.06-61.11-195.66-114.33-152.29-285.39-370.57-481.16-624.77-811.23
Free Cash Flow 23.1422.35-132.65-20.94-5.15-66.71-86.62-112.47-146.04-189.63
WACC
PV LFCF -61.64-73.95-88.72-106.44-127.69
SUM PV LFCF -458.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.23
Free cash flow (t + 1) -193.42
Terminal Value -3,104.68
Present Value of Terminal Value -2,090.64

Intrinsic Value

Enterprise Value -2,549.08
Net Debt 79.80
Equity Value -2,628.87
Shares Outstanding 249.44
Equity Value Per Share -10.54