BVN
Compañía de Minas Buenaventura S.A.A.
$27.92
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 39.6% below fair value
You pay
$27.92
Bear
$27.80
Fair
$46.19
Bull
$67.48
Bear
$27.80
-0.4%
10% stage 1 growth, 11% discount
Fair
$46.19
+65.4%
17% stage 1 growth, 11% discount
Bull
$67.48
+141.7%
22% stage 1 growth, 11% discount
Adjust Assumptions
16.6%
11.0%
3.0%
Key Value Driver
FCF growth rate (17% base case)
Terminal Value % of EV
44%
Implied Market Multiple
21.6x
Market is pricing in (growth)
10.0%
vs 16.6% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (8 analysts)
$39.50
Divergence from AlphaVal
17%
Summary
Using a two-stage FCF DCF with 17% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $46.19 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions