As of May 29, 2025, Endeavour Mining Corp's estimated intrinsic value ranges from $29.88 to $88.41 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $88.41 | +110.6% |
| Discounted Cash Flow (5Y) | $56.31 | +34.1% |
| Dividend Discount Model (Multi-Stage) | $29.88 | -28.8% |
| Earnings Power Value | $30.47 | -27.4% |
Is Endeavour Mining Corp (EDV.TO) undervalued or overvalued?
With the current market price at $41.98, 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 Endeavour 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 | 1.14 | 1.31 |
| Cost of equity | 9.0% | 12.1% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| After-tax WACC | 8.3% | 11.0% |
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 | $41 | $10,340M | 76.6% |
| 10-Year Growth | $64 | $15,992M | 62.2% |
| 5-Year EBITDA | $38 | $9,564M | 74.7% |
| 10-Year EBITDA | $55 | $13,695M | 55.9% |
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 | $546M |
| Discount Rate (WACC) | 11.0% - 8.3% |
| Enterprise Value | $4,974M - $6,605M |
| Net Debt | $424M |
| Equity Value | $4,549M - $6,181M |
| Outstanding Shares | 242M |
| Fair Value | $19 - $26 |
| Selected Fair Value | $30.47 |
| Metric | Value |
|---|---|
| Market Capitalization | $10152M |
| Enterprise Value | $10735M |
| Trailing P/E | 0.00 |
| Forward P/E | 41.45 |
| Trailing EV/EBITDA | 5.20 |
| Current Dividend Yield | 134.41% |
| Dividend Growth Rate (5Y) | -10.38% |
| Debt-to-Equity Ratio | 0.16 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $26.52 |
| Discounted Cash Flow (5Y) | 29% | $14.08 |
| Dividend Discount Model (Multi-Stage) | 24% | $5.98 |
| Earnings Power Value | 12% | $3.05 |
| Weighted Average | 100% | $58.38 |
Based on our comprehensive valuation analysis, Endeavour Mining Corp's weighted average intrinsic value is $58.38, which is approximately 39.1% above the current market price of $41.98.
Key investment considerations:
Given these factors, we believe Endeavour Mining Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.