As of May 27, 2025, Copper Mountain Mining Corp's estimated intrinsic value ranges from $0.66 to $5.16 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $5.16 | +107.3% |
| Discounted Cash Flow (5Y) | $3.12 | +25.2% |
| Dividend Discount Model (Stable) | $1.22 | -50.9% |
| Earnings Power Value | $0.66 | -73.6% |
Is Copper Mountain Mining Corp (CMMC.TO) undervalued or overvalued?
With the current market price at $2.49, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Copper Mountain Mining Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.19 | 1.47 |
| Cost of equity | 9.2% | 13.1% |
| Cost of debt | 6.3% | 7.0% |
| Tax rate | 25.8% | 35.6% |
| Debt/Equity ratio | 0.69 | 0.69 |
| After-tax WACC | 7.3% | 9.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $3 | $864M | 81.2% |
| 10-Year Growth | $5 | $1,302M | 65.2% |
| 5-Year EBITDA | $4 | $1,044M | 84.4% |
| 10-Year EBITDA | $6 | $1,501M | 69.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $28M |
| Discount Rate (WACC) | 9.6% - 7.3% |
| Enterprise Value | $292M - $382M |
| Net Debt | $196M |
| Equity Value | $96M - $186M |
| Outstanding Shares | 214M |
| Fair Value | $0 - $1 |
| Selected Fair Value | $0.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $534M |
| Enterprise Value | $730M |
| Trailing P/E | 20.65 |
| Forward P/E | 20.65 |
| Trailing EV/EBITDA | 8.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.69 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 37% | $1.55 |
| Discounted Cash Flow (5Y) | 31% | $0.78 |
| Dividend Discount Model (Stable) | 19% | $0.18 |
| Earnings Power Value | 12% | $0.07 |
| Weighted Average | 100% | $3.22 |
Based on our comprehensive valuation analysis, Copper Mountain Mining Corp's weighted average intrinsic value is $3.22, which is approximately 29.4% above the current market price of $2.49.
Key investment considerations:
Given these factors, we believe Copper Mountain Mining Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.