Discounted Cash Flow (DCF) Analysis Levered

Silvercorp Metals Inc. (SVM.TO)

$3.91

+0.18 (+4.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.36 | 3.91 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	170.52	158.83	192.11	217.92	208.13	220.12	232.80	246.21	260.39	275.39
Revenue (%)
Operating Cash Flow	67.75	77.25	85.91	107.38	85.64	98.40	104.06	110.06	116.40	123.10
Operating Cash Flow (%)
Capital Expenditure	-34.31	-35.30	-52.20	-67.20	-54.96	-55.81	-59.02	-62.42	-66.02	-69.82
Capital Expenditure (%)
Free Cash Flow	33.44	41.94	33.71	40.17	30.69	42.59	45.04	47.64	50.38	53.29

Weighted Average Cost Of Capital

Share price	$ 3.91
Beta	0.768
Diluted Shares Outstanding	178.99
Cost of Debt
Tax Rate	41.36
After-tax Cost of Debt	28.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.923
Total Debt	0.58
Total Equity	699.85
Total Capital	700.43
Debt Weighting	0.08
Equity Weighting	99.92
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	170.52	158.83	192.11	217.92	208.13	220.12	232.80	246.21	260.39	275.39
Operating Cash Flow	67.75	77.25	85.91	107.38	85.64	98.40	104.06	110.06	116.40	123.10
Capital Expenditure	-34.31	-35.30	-52.20	-67.20	-54.96	-55.81	-59.02	-62.42	-66.02	-69.82
Free Cash Flow	33.44	41.94	33.71	40.17	30.69	42.59	45.04	47.64	50.38	53.29
WACC
PV LFCF						39.46	38.66	37.88	37.12	36.37
SUM PV LFCF										189.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.94
Free cash flow (t + 1)	54.35
Terminal Value	915.01
Present Value of Terminal Value	624.47

Intrinsic Value

Enterprise Value	813.95
Net Debt	-145.11
Equity Value	959.06
Shares Outstanding	178.99
Equity Value Per Share	5.36