Welcome back to our channel! In this video, we dive into a powerful valuation trick for lithium stocks that can help you determine if a stock is undervalued or overvalued quickly.
Our expert analyst walks you through the step-by-step process of using a comparable valuation model, focusing on a real-life example – Lithium Chile (TSXV: LITH / OTCQB: LTMCF).
🔍 Key Steps Covered:
1️⃣ Look for the company's resource estimate on their website or presentation.
2️⃣ Calculate 100% of measured and indicated resources plus 50% of inferred resources.
3️⃣ Multiply the result by C$100 (current sector EV/t).
4️⃣ Add the company's cash and subtract debt.
5️⃣ Divide the total by outstanding shares to get the fair value per share.
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