Sotkamo Silver Valuation

Q: What is the Fair Price of SOSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SOSI (SEK1.06) is trading below our estimate of [[fair value]] (SEK5.23)

Is SOSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SOSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOSI (SEK1.06) is trading below our estimate of fair value (SEK5.23)

Significantly Below Fair Value: SOSI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOSI?

Key metric: As SOSI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SOSI. This is calculated by dividing SOSI's market cap by their current earnings.
What is SOSI's PE Ratio?
PE Ratio	67.1x
Earnings	SEK 4.50m
Market Cap	SEK 300.46m

SOSI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	3.8x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does SOSI's PE Ratio compare to its peers?

The above table shows the PE ratio for SOSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	42.2x
DRIL Drillcon	11.2x	n/a	SEK 201.6m
LGOLD B Lappland Guldprospektering	146.1x	n/a	SEK 132.2m
PROF B ProfilGruppen	7.6x	n/a	SEK 717.7m
AUR Auriant Mining	3.9x	n/a	SEK 98.8m
SOSI Sotkamo Silver	67.1x	29.6%	SEK 300.5m

Price-To-Earnings vs Peers: SOSI is expensive based on its Price-To-Earnings Ratio (67.1x) compared to the peer average (42.2x).

Price to Earnings Ratio vs Industry

How does SOSI's PE Ratio compare vs other companies in the European Metals and Mining Industry?

15 Companies	Price / Earnings	Estimated Growth	Market Cap

15 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SOSI is expensive based on its Price-To-Earnings Ratio (67.1x) compared to the European Metals and Mining industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is SOSI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOSI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	67.1x
Fair PE Ratio	22.6x

Price-To-Earnings vs Fair Ratio: SOSI is expensive based on its Price-To-Earnings Ratio (67.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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