How far off is Silver Lake Resources Limited (ASX:SLR) to its intrinsic value? Using the most recent financial data, I am going to take a look now using a method called discounted cash flow or DCF. Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity by taking the expected Future Cash Flows and discounting them to their present value. Don’t get put off by the jargon, the math behind it is actually quite straightforward.
If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model. Please also note that this article was written in October 2017 so be sure check out the updated calculation by following the link below.