Published on 26 May 2024 on Simply Wall St. via Yahoo Finance
Sandstorm Gold Ltd. (TSE:SSL) Shares Could Be 28% Below Their Intrinsic Value Estimate
Key Insights
The projected fair value for Sandstorm Gold is CA$11.00 based on 2 Stage Free Cash Flow to EquitySandstorm Gold's CA$7.94 share price signals that it might be 28% undervaluedOur fair value estimate is 12% higher than Sandstorm Gold's analyst price target of US$9.83
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sandstorm Gold Ltd. (TSE:SSL) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex.