Liberty Star Uranium & Metals (Liberty Star Uranium & Metals) Intrinsic Value: DCF (Earnings Based) : $-1.38 (As of May. 04, 2024)

---

Liberty Star Uranium & Metals Intrinsic Value: DCF (Earnings Based) Chart

---

Competitive Comparison of Liberty Star Uranium & Metals's Intrinsic Value: DCF (Earnings Based)

For the Other Industrial Metals & Mining subindustry, Liberty Star Uranium & Metals's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

---

Liberty Star Uranium & Metals's Price-to-DCF (Earnings Based) Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Liberty Star Uranium & Metals's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where Liberty Star Uranium & Metals's Price-to-DCF (Earnings Based) falls into.

---

Liberty Star Uranium & Metals Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.50%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Liberty Star Uranium & Metals's average EPS without NRI Growth Rate in the past 5 years was 24.90%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = $-0.044.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Liberty Star Uranium & Metals's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

---

Liberty Star Uranium & Metals  (OTCPK:LBSR) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.

---

Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

---

Liberty Star Uranium & Metals Intrinsic Value: DCF (Earnings Based) Related Terms

Thank you for viewing the detailed overview of Liberty Star Uranium & Metals's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Predictability Rank Intrinsic Value: DCF (FCF Based) Intrinsic Value: DCF (Dividends Based) Intrinsic Value: Projected FCF EPS without NRI Free Cash Flow Margin of Safety % (DCF FCF Based) Margin of Safety % (DCF Earnings Based) Margin of Safety % (DCF Dividends Based)

---

Liberty Star Uranium & Metals (Liberty Star Uranium & Metals) Business Description

Executives

Pete O'heeron	director	17300 EL CAMINEO REAL, SUITE 110, HOUSTON TX 77058
Brett Gross	director	2 EAST CONGRESS ST., STE 900, TUCSON AZ 85701
Saleem Elmasri	director	450 PARK AVE SOUTH, 3RD FLOOR, NEW YORK NY 10016
Vann Eugene Streety	director	201 MAGNOLIA RIDGE, CRAWFORDVILLE FL 32327
W. Bradley Munroe	director	239 EAST VIRGINIA ST, TALLAHASSEE FL 32301
Boyd Charles Gordon	director	2081 KAHALA CIRCLE, CASTLE ROCK CO 80104
Patricia Madaris	officer: VP Finance	5610 E. SUTLER LANE, TUCSON AZ 85629
Bernard John Guarnera	director	9213 LAS MANAITAS AVENUE, SUITE 401, LAS VEGAS NV 89144
Nicholas H. Hemmerly	director	2537 RESEARCH BOULEVARD, SUITE 201, FORT COLLINS CO 80526
Charles D. Vollmer	director	1645 WHITE PINE DRIVE, VIENNA VA 22182
Othon T Eduardo	director, officer: VP Global Business Dev.	109 N LOOKOUT KNOB DRIVE, SAHUARITA AZ 85629
Larry Liang	director, officer: VP Business Dev. China	255 WHTINEY AVENUE, APT. 15, NEW HAVEN CT 06511
Keith Brill	director	250 CENTRAL AVENUE APT B204, LAWRENCE NY 11559
James A Briscoe	director, officer: President, CEO Chairman	5610 E SUTLER LANE, TUCSON AZ 85712
Robert B Fields	director	215 EAST 68TH STREET, NEW YORK NY 10021