THX.V
THOR EXPLORATIONS LTD.ClosedTHX.V discounted cash flow valuation
THX.V Fair Value
Reverse DCF: today's price implies -38.1% a year of FCF growth for years 1–5, against -5.0% in this model.
Model: -5.0% from analyst next-year EPS & revenue growth (capped). Fades linearly to terminal growth by year 10.
Model: 14.11% (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 1.25B |
|---|---|
| PV of terminal value (29% of EV) | CAD 520.02M |
| Enterprise value | CAD 1.77B |
| + Cash & investments | CAD 274.85M |
| − Total debt | −CAD 224.86K |
| Equity value | CAD 2.05B |
| ÷ Shares outstanding | 666.57M |
| Value per share | CAD 3.07 |
| Market cap | CAD 659.91M |
USD statements converted at 1.423 CAD.
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.19% |
|---|---|
| Beta (clamped 0.5–2.5) | 1.78 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 14.12% |
| Pre-tax cost of debt | 12.00% |
| Tax rate | 21.0% |
| Debt / (equity + debt) | 0.0% |
| WACC | 14.11% |
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% |
|---|---|---|---|---|---|
| 12.11% | 3.41 | 3.49 | 3.57 | 3.66 | 3.76 |
| 13.11% | 3.18 | 3.24 | 3.30 | 3.37 | 3.44 |
| 14.11% | 2.98 | 3.02 | 3.07 | 3.13 | 3.19 |
| 15.11% | 2.81 | 2.85 | 2.89 | 2.93 | 2.98 |
| 16.11% | 2.66 | 2.69 | 2.72 | 2.76 | 2.80 |
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 292.50M | — | — |
| Year 1 | -5.0% | CAD 277.87M | 0.876 | CAD 243.51M |
| Year 2 | -5.0% | CAD 263.98M | 0.768 | CAD 202.73M |
| Year 3 | -5.0% | CAD 250.78M | 0.673 | CAD 168.78M |
| Year 4 | -5.0% | CAD 238.24M | 0.590 | CAD 140.52M |
| Year 5 | -5.0% | CAD 226.33M | 0.517 | CAD 116.98M |
| Year 6 | -3.5% | CAD 218.41M | 0.453 | CAD 98.93M |
| Year 7 | -2.0% | CAD 214.04M | 0.397 | CAD 84.96M |
| Year 8 | -0.5% | CAD 212.97M | 0.348 | CAD 74.08M |
| Year 9 | 1.0% | CAD 215.10M | 0.305 | CAD 65.57M |
| Year 10 | 2.5% | CAD 220.48M | 0.267 | CAD 58.90M |
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.