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$100 silvers' price, 5x CF, 100m outstanding shares

RO
RockeTellerInvested
Community Contributor

Published

September 26 2024

Updated

December 05 2024

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Vizsla Resources: Stock Price Estimate at $100 Silver

Step 1: Future Revenue

- Projected Resource: 275M oz AgEq.

- Predicted Silver Price: $100/oz.

- Revenue = 275,000,000 × 100 = $27,500,000,000 USD.

Step 2: Future Cash Flow

- Cash Flow Margin: 30%.

- Cash Flow = 27,500,000,000 × 0.30 = $8,250,000,000 USD.

Step 3: Market Cap and Stock Price

1. Market Cap:

- Cash Flow Multiple: 5x.

- Market Cap = 8,250,000,000 × 5 = $41,250,000,000 USD.

2. Stock Price:

- Shares Outstanding: 100M.

- Stock Price = 41,250,000,000 ÷ 100,000,000 = $412.50 USD.

Conclusion

If silver reaches $100/oz, and Vizsla Resources extracts and sells its 275M oz resource, the estimated stock price is $412.50 per share based on:

- A 5x cash flow multiple.

- A 30% cash flow margin.

- 100M shares outstanding.

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Disclaimer

The user RockeTeller has a position in TSX:VZLA. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
CA$412.0
99.2% undervalued intrinsic discount
RockeTeller's Fair Value
Future estimation in
PastFuture-15m02018202020222024202620282029Revenue CA$0Earnings CA$0
% p.a.
Decrease
Increase
Current revenue growth rate
49.30%
Metals and Mining revenue growth rate
4.74%