FSM
Fortuna Silver Mines Inc. (FSM)
Last Price$5.17.4%
Market Cap$1,542.8M
DCF value
$7.4
Undervalued (DCF value)
45.5%
Discount Rate
10.3%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Great

FSM DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
257.2
(2.3%)
279.0
8.5%
599.9
115.0%
681.5
13.6%
842.4
23.6%
1,061.3
26.0%
1,047.0
(1.3%)
817.0
(22.0%)
724.5
(11.3%)
694.9
(4.1%)
673.6
(3.1%)
659.7
(2.1%)
652.8
(1.0%)
652.6
(0.0%)
659.1
1.0%
672.3
2.0%
53.3
20.7%
57.2
20.5%
136.9
22.8%
85.7
12.6%
(0.4)
(0.0%)
105.4
9.9%
104.0
9.9%
81.2
9.9%
72.0
9.9%
69.0
9.9%
66.9
9.9%
65.5
9.9%
64.9
9.9%
64.8
9.9%
65.5
9.9%
66.8
9.9%
NOPAT
% effective tax rate
28.8
11.2%
20.9
7.5%
75.9
12.6%
93.1
13.7%
(1.6)
(0.2%)
416.3
39.2%
410.7
39.2%
320.5
39.2%
284.2
39.2%
272.6
39.2%
264.2
39.2%
258.8
39.2%
256.1
39.2%
256.0
39.2%
258.5
39.2%
263.7
39.2%
% of revenue
47.7
18.5%
48.6
17.4%
125.0
20.8%
168.2
24.7%
219.7
26.1%
253.3
23.9%
249.9
23.9%
195.0
23.9%
172.9
23.9%
165.8
23.9%
160.7
23.9%
157.4
23.9%
155.8
23.9%
155.8
23.9%
157.3
23.9%
160.4
23.9%
% of revenue
(224.1)
(87.1%)
(114.3)
(41.0%)
(152.3)
(25.4%)
(251.2)
(36.9%)
(217.3)
(25.8%)
(311.5)
(29.3%)
(307.3)
(29.3%)
(239.8)
(29.3%)
(212.6)
(29.3%)
(204.0)
(29.3%)
(197.7)
(29.3%)
(193.6)
(29.3%)
(191.6)
(29.3%)
(191.5)
(29.3%)
(193.4)
(29.3%)
(197.3)
(29.3%)
(10.7)
(4.2%)
(9.1)
(3.3%)
(39.3)
(6.6%)
(18.0)
(2.6%)
(9.9)
(1.2%)
(36.7)
(3.5%)
(36.2)
(3.5%)
(28.3)
(3.5%)
(25.1)
(3.5%)
(24.0)
(3.5%)
(23.3)
(3.5%)
(22.8)
(3.5%)
(22.6)
(3.5%)
(22.6)
(3.5%)
(22.8)
(3.5%)
(23.2)
(3.5%)
Free Cash Flow to Firm (FCFF)
% of revenue
(158.3)
(61.6%)
(53.9)
(19.3%)
9.2
1.5%
(7.9)
(1.2%)
(9.1)
(1.1%)
321.4
30.3%
317.1
30.3%
247.4
30.3%
219.4
30.3%
210.4
30.3%
204.0
30.3%
199.8
30.3%
197.7
30.3%
197.6
30.3%
199.6
30.3%
203.6
30.3%
% of FCFF used in calculation
100.0%
80.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.95
0.86
0.78
0.71
0.64
0.58
0.53
0.48
0.44
Discounted FCFF (DFCFF)
244.0
213.6
171.8
149.4
131.3
116.6
104.6
94.8
86.8

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FSM DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
1,312.9M
55.1%
Terminal Value (TV)
2,456.2M
Discounted TV
% share of EV
1,068.4M
44.9%
Total Debt
264.2M
2,245.2M
Shares outstanding
303.1M
FX rate
1.0
45.5% undervalued

Equity Value Bridge

FSM DCF Financials

Revenue
$842.4M -> $659.1M (2.4%) CAGR
Operating Income
($407.0K) -> $65.5M N/A CAGR
FCFF
($9,148.4K) -> $199.6M N/A CAGR

FSM DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
$8.0
$8.0
$9.0
$9.0
$9.0
9.5%
$8.0
$8.0
$8.0
$8.0
$9.0
10.3%
$7.0
$7.0
$7.0
$8.0
$8.0
10.5%
$7.0
$7.0
$7.0
$7.0
$8.0
11.0%
$7.0
$7.0
$7.0
$7.0
$7.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
57.0%
57.0%
77.0%
77.0%
77.0%
9.5%
57.0%
57.0%
57.0%
57.0%
77.0%
10.3%
38.0%
38.0%
38.0%
57.0%
57.0%
10.5%
38.0%
38.0%
38.0%
38.0%
57.0%
11.0%
38.0%
38.0%
38.0%
38.0%
38.0%

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FAQ

What is Fortuna Silver Mines Inc. DCF (discounted cash flow) valuation?

As of Mar 11, 2025, Fortuna Silver Mines Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $7.4. This suggests it may be undervalued by 45.5% compared to its current price of around $5.1, using a WACC of 10.3% and growth rates of 2.0%.

What is Fortuna Silver Mines Inc. WACC?

As of Mar 11, 2025, Fortuna Silver Mines Inc.'s Weighted Average Cost of Capital (WACC) is approximately 10.3%.

What is Fortuna Silver Mines Inc. Enterprise Value?

As of Mar 11, 2025, Fortuna Silver Mines Inc.'s Enterprise Value (EV) is approximately $2,381.3M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.