Uranium Participation (U:TSE) Fundamental Valuation Report

Uranium Participation (U:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Uranium Participation(U:TSE)

Energy:Uranium

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$5.10 (CAD) 04/23/2021

Weighted Valuation
$5.31 (CAD)

Overall Rating
Fairly valued to slightly Undervalued by 4.2%

Valuation Models Multiples: $5.16 (CAD)
Adjusted Book Value: $4.50 (CAD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $6.28 this stock is Undervalued

Company Overview (U:TSE CAD)

Price 5.10
Range 5.09 – 5.16
52 week 3.93 – 5.67
Open 5.10
Vol / Avg. 266391/442401
Mkt cap 688.19M
P/E 17.00
Div/yield 0.00/0.00
EPS 0.30
Shares 134.94M
Beta 0.58

Company Description

Uranium Participation Corp is an investment company managed by Denison Mines Inc. Its primary interest lies in investing in Uranium based assets, including uranium oxide and uranium hexafluoride. The company stores its uranium deposits at uranium conversion or facilities.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for U:TSE

Using a discounted cash flow model we generated an intrinsic value of ($1.17) (CAD) for U:TSE

Comparables Model

Using similar companies and price based ratios we generated a valuation of $7.47 (CAD) for U:TSE. We also generated a valuation of $10.85 (CAD) using other metrics and comparables.
The comparable companies were IsoEnergy (ISO:TSX), GoviEx Uranium (GXU:TSX), Fission Uranium (FCU:TSE), NexGen Energy (NXE:TSE) and enCore Energy (EU:TSX).

Company U:TSE End Date Value
Earnings/Share $0.30 (CAD)
Book Value/Share $4.61 (CAD)
Sales/Share $0.01 (CAD)
Cash Flow/Share ($0.04) (CAD)
EBITDA/Share ($0.04) (CAD)
Price Based on Comps Adjustment Factor (%)
$0.00 (CAD) 0.0
$11.01 (CAD) -32.2
$0.00 (CAD) 0.0
$0.00 (CAD) 0.0
$0.00 (CAD) 0.0
U:TSE Ratios Used Average Values ISO:TSX GXU:TSX FCU:TSE NXE:TSE EU:TSX
17.00 PE Ratio 0.00 0.00 0.00 0.00 0.00 0.00
1.11 PB Ratio 10.49 4.24 1.96 0.97 22.36 22.95
452.39 PS Ratio 0.00 0.00 0.00 0.00 0.00 0.00
0.00 PCF Ratio 0.00 0.00 0.00 0.00 0.00 0.00
0.00 EV to EBITDA 0.00 0.00 0.00 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $5.16 (CAD) for U:TSE

Company U:TSE End Date Value
Earnings/Share $0.30 (CAD)
Book Value/Share $4.61 (CAD)
Sales/Share $0.01 (CAD)
Cash Flow/Share ($0.04) (CAD)
EBITDA/Share ($0.04) (CAD)
Price Based on Comps Adjustment Factor
$1.84 (CAD) 0
$4.61 (CAD) 0
$9.02 (CAD) 0
$0.00 (CAD) 0
$0.00 (CAD) 0
Ratios Ratio Average
PE Ratio 6.14
PB Ratio 1.00
PS Ratio 798.39
PCF Ratio 0.00
EV to EBITDA 9.49

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  U:TSE for the last 10 years was  0.98

We ran the Adjusted Book Value for  U:TSE and generated a book value of  $4.61 (CAD)
By multiplying these we get an adjusted valuation of  $4.50 (CAD)

Analyst Data

In the Stockcalc database there are 5 analysts that provide a valuation for U:TSE. The 5 analysts have a concensus valuation for U:TSE for 2022 of $6.28 (CAD).

U:TSE Uranium Participation

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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