A Look At Avino Silver & Gold Mines (TSX:ASM) Valuation As Silver Market Sentiment Improves

Why Avino Is Back On Radar For Precious Metals Traders

Recent interest in Avino Silver & Gold Mines (TSX:ASM) is tied to its small-cap profile and close link to silver prices, which have been drawing more positive attention from metals focused investors.

See our latest analysis for Avino Silver & Gold Mines.

At a share price of CA$8.48, Avino’s recent 90 day share price return of 20.28% and very large 1 year total shareholder return suggest momentum has been building as silver focused traders reassess risk and potential.

If Avino has put precious metals back on your watchlist, it could be a good time to see what else is moving and check out fast growing stocks with high insider ownership.

With Avino trading at CA$8.48 against an analyst price target of CA$5.30, yet screening as materially below an estimated intrinsic value, investors may question whether there is genuine upside remaining or whether the market is already pricing in future growth.

Most Popular Narrative: 60% Overvalued

With Avino Silver & Gold Mines closing at CA$8.48 against a narrative fair value of CA$5.30, investors are weighing upbeat growth forecasts against a lower implied valuation.

The analysts have a consensus price target of CA$5.225 for Avino Silver & Gold Mines based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of CA$6.2, and the most bearish reporting a price target of just CA$4.25.

Read the complete narrative.

Want to see what kind of revenue path, margin lift and future earnings multiple are being pencilled in to reach that fair value? The narrative leans on meaningful top line expansion, much fatter profitability and a valuation ratio that shifts materially from today. Curious how those moving parts fit together to justify a lower price than the market is paying right now? Read on to see the full financial storyline behind that estimate.

Result: Fair Value of CA$5.30 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, high grade La Preciosa drill results and lower per unit costs could support stronger cash generation than analysts currently build into their CA$5.30 fair value.

Find out about the key risks to this Avino Silver & Gold Mines narrative.

Another Angle On Value

The analyst fair value of CA$5.30 and the current price of CA$8.48 tell one story, but our SWS DCF model points in the opposite direction, indicating Avino is trading at a very large discount to an estimated fair value of CA$23.95. Which set of assumptions do you trust more?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Avino Silver & Gold Mines for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 881 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Avino Silver & Gold Mines Narrative

If you look at these numbers and come to a different conclusion, or simply prefer to dig into the data yourself, you can shape a custom view in just a few minutes with Do it your way.

A great starting point for your Avino Silver & Gold Mines research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready For More Investment Ideas?

If you are weighing Avino and want fresh ideas on where to look next, a few focused stock lists can quickly highlight opportunities that match your style.

• Spot potential high return setups by scanning these 3542 penny stocks with strong financials that pair smaller market caps with stronger fundamentals than you might expect.
• Zero in on future facing themes by checking out these 27 AI penny stocks that tie artificial intelligence to real business models.
• Hunt for possible mispriced names by reviewing these 881 undervalued stocks based on cash flows that screen as cheap on cash flow based metrics.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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