TRU.V
TRU PRECIOUS METALS CORPAfter hoursTRU.V discounted cash flow valuation
TRU.V Fair Value
Reverse DCF: today's price implies -10.8% a year of FCF growth for years 1–5, against 5.0% in this model.
Model: 5.0% from default 5%. Fades linearly to terminal growth by year 10.
Model: 16.42% (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 1.18M |
|---|---|
| PV of terminal value (29% of EV) | CAD 492.39K |
| Enterprise value | CAD 1.67M |
| + Cash & investments | CAD 3.34M |
| − Total debt | CAD 0 |
| Equity value | CAD 5.01M |
| ÷ Shares outstanding | 165.42M |
| Value per share | CAD 0.0303 |
| Market cap | CAD 4.14M |
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.19% |
|---|---|
| Beta (clamped 0.5–2.5) | 2.25 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 16.42% |
| Pre-tax cost of debt | 6.69% |
| Tax rate | 15.0% |
| Debt / (equity + debt) | 0.0% |
| WACC | 16.42% |
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% |
|---|---|---|---|---|---|
| 14.42% | 0.0316 | 0.0318 | 0.0321 | 0.0323 | 0.0327 |
| 15.42% | 0.0307 | 0.0309 | 0.0311 | 0.0313 | 0.0316 |
| 16.42% | 0.0300 | 0.0301 | 0.0303 | 0.0305 | 0.0307 |
| 17.42% | 0.0293 | 0.0295 | 0.0296 | 0.0298 | 0.0299 |
| 18.42% | 0.0288 | 0.0289 | 0.0290 | 0.0291 | 0.0293 |
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 201.79K | — | — |
| Year 1 | 5.0% | CAD 211.88K | 0.859 | CAD 182.00K |
| Year 2 | 5.0% | CAD 222.47K | 0.738 | CAD 164.14K |
| Year 3 | 5.0% | CAD 233.60K | 0.634 | CAD 148.04K |
| Year 4 | 5.0% | CAD 245.28K | 0.544 | CAD 133.52K |
| Year 5 | 5.0% | CAD 257.54K | 0.468 | CAD 120.42K |
| Year 6 | 4.5% | CAD 269.13K | 0.402 | CAD 108.09K |
| Year 7 | 4.0% | CAD 279.90K | 0.345 | CAD 96.56K |
| Year 8 | 3.5% | CAD 289.69K | 0.296 | CAD 85.85K |
| Year 9 | 3.0% | CAD 298.38K | 0.255 | CAD 75.95K |
| Year 10 | 2.5% | CAD 305.84K | 0.219 | CAD 66.87K |
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.