Silver Tiger Metals (TSXV:SLVR) Valuation After $40M Equity Raise and Narrower Quarterly Net Loss

Silver Tiger Metals (TSXV:SLVR) just wrapped up a sizeable CAD 40 million follow on equity raise, days before reporting a narrower quarterly net loss that subtly shifts the risk reward profile for this junior miner.

See our latest analysis for Silver Tiger Metals.

At a CA$0.73 share price, Silver Tiger’s 1 month share price return of 7.35 percent sits against a hefty year to date share price return of over 200 percent. This suggests momentum is still building as the financing and improving net loss reshape how investors view its growth runway and risks.

If this kind of high beta move has your attention, it might be a good time to see what else is moving and discover fast growing stocks with high insider ownership.

With a fresh CA$40 million raised, a slimmer net loss and a share price still trading below some valuation estimates, is Silver Tiger Metals genuinely undervalued today, or is the market already pricing in its next leg of growth?

Price to Book of 4x: Is it justified?

Our DCF model estimates a fair value for Silver Tiger Metals of CA$4.65 per share, versus the latest close at CA$0.73, implying deep undervaluation.

The SWS DCF model projects Silver Tiger Metals future cash flows from its El Tigre property and discounts them back to today, using a required return to reflect risk and the time value of money. This approach focuses on the long term cash generation potential of the asset, rather than today’s lack of revenue or current losses.

For a pre revenue junior miner with forecast triple digit revenue and earnings growth, a DCF anchored view can be more informative than short term earnings multiples. It captures the potential inflection from exploration to development and, ultimately, production, which traditional metrics struggle to reflect at this stage.

Look into how the SWS DCF model arrives at its fair value.

Result: DCF Fair value of $4.65 (UNDERVALUED)

However, Silver Tiger remains pre revenue, and any delays, cost overruns or disappointing drilling at El Tigre could quickly challenge the bullish valuation case.

Find out about the key risks to this Silver Tiger Metals narrative.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Silver Tiger Metals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 911 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Silver Tiger Metals Narrative

If you are not fully aligned with this view, or simply prefer your own research driven take, you can build a custom narrative in just a few minutes, starting with Do it your way.

A great starting point for your Silver Tiger Metals research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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