Published on 13 Apr 2024 on Simply Wall St. via Yahoo Finance
Does This Valuation Of Agnico Eagle Mines Limited (NYSE:AEM) Imply Investors Are Overpaying?
Key Insights
The projected fair value for Agnico Eagle Mines is US$46.13 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$61.45 suggests Agnico Eagle Mines is potentially 33% overvalued The US$69.82 analyst price target for AEM is 51% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Agnico Eagle Mines Limited (NYSE:AEM) as an investment opportunity by taking the expected future cash flows and discounting them 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.