EQX.TO
EQUINOX GOLD CORPClosedEQX.TO discounted cash flow valuation
EQX.TO Fair Value
Reverse DCF: today's price implies 54.3% a year of FCF growth for years 1–5, against 25.0% in this model.
Model: 25.0% from analyst next-year EPS & revenue growth (capped). Fades linearly to terminal growth by year 10.
Model: 17.25% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | CAD 3.18B |
|---|---|
| PV of terminal value (37% of EV) | CAD 1.88B |
| Enterprise value | CAD 5.06B |
| + Cash & investments | CAD 684.33M |
| − Total debt | −CAD 1.19B |
| Equity value | CAD 4.55B |
| ÷ Shares outstanding | 1.17B |
| Value per share | CAD 3.90 |
| Market cap | CAD 18.03B |
USD statements converted at 1.421 CAD.
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.22% |
|---|---|
| Beta (clamped 0.5–2.5) | 2.50 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 17.72% |
| Pre-tax cost of debt | 12.00% |
| Tax rate | 15.0% |
| Debt / (equity + debt) | 6.2% |
| WACC | 17.25% |
Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 15.25% | 4.52 | 4.65 | 4.78 | 4.92 | 5.08 |
| 16.25% | 4.10 | 4.20 | 4.31 | 4.42 | 4.55 |
| 17.25% | 3.73 | 3.81 | 3.90 | 4.00 | 4.10 |
| 18.25% | 3.40 | 3.48 | 3.55 | 3.63 | 3.72 |
| 19.25% | 3.12 | 3.18 | 3.25 | 3.31 | 3.38 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (TTM) | — | CAD 254.46M | — | — |
| Year 1 | 25.0% | CAD 318.08M | 0.853 | CAD 271.28M |
| Year 2 | 25.0% | CAD 397.60M | 0.727 | CAD 289.21M |
| Year 3 | 25.0% | CAD 497.00M | 0.620 | CAD 308.33M |
| Year 4 | 25.0% | CAD 621.24M | 0.529 | CAD 328.71M |
| Year 5 | 25.0% | CAD 776.56M | 0.451 | CAD 350.44M |
| Year 6 | 20.5% | CAD 935.75M | 0.385 | CAD 360.15M |
| Year 7 | 16.0% | CAD 1.09B | 0.328 | CAD 356.31M |
| Year 8 | 11.5% | CAD 1.21B | 0.280 | CAD 338.84M |
| Year 9 | 7.0% | CAD 1.30B | 0.239 | CAD 309.21M |
| Year 10 | 2.5% | CAD 1.33B | 0.204 | CAD 270.32M |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else the average of next year's EPS and revenue growth, else revenue CAGR, held between −5% and 25%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.