NIC 0.61% 83.0¢ nickel industries limited

The DCF value has been revised down today to $8.39. I find SW S...

  1. 5,282 Posts.
    lightbulb Created with Sketch. 2290
    The DCF value has been revised down today to $8.39. I find SW S ok as a guide but it takes a while to get to know how to use it.
    They use Analyst estimates for the basics of cash flow.
    A quick check shows that the new cash flow numbers have been included in calculations but the new number of expected shares has not been yet added to the SOI meaning that the DCF value per share is overstated.
    So the new shares have not been officially issued but Analysts have revised the numbers. I have advised SWS of this issue.
    Around 675 million shares in total will be issued. Added to the existing pre raise SOI of 2.99 bill ion shares = say close to 3.675 bill shares.
    New DCF value should be around $6.81 per share.
    I expect to see this revised further down as more Analysts chip in with estimates.
    Another issue is whether the Analysts estimates of massive Free cash flow increases can be achieved. I am not sure and other posters are more likely to have an opinion on this.
    598.05m for 2024. 2 Analysts
    830m for 2025. 1 Analyst
    1053m for 2026. 1 Analyst.
    etc.
    The problem with relying on only one or 2 Analyst estimates is that they are usually the one's being paid for services.

 
watchlist Created with Sketch. Add NIC (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.