The Globe and Mail attempts to identify large gold mining stocks that may be undervalued despite the recent rally in the sector in its Tuesday edition. The Globe's guest columnist Brian Donovan writes that he used a proprietary stock valuation tool called StockCalc to calculate fundamental (or intrinsic) valuations to see whether a stock was undervalued or overvalued compared with its price. Mr. Donovan used standard valuation techniques including discounted cash flow, comparables and adjusted book value. Discounted cash flow (DCF) is a valuation technique in which cash-flow projections are discounted back to the present to calculate value per share. Mr. Donovan used DCF to find undervalued stocks. With the exception of Newmont, all of Mr. Donovan's stock picks still show more than 30-per-cent upside from here over the next 12 months. Mr. Donovan says macro events driving the price of gold include haven demand, easing monetary policy, especially in the United States, and negative real interest rates. Mr. Donovan says investing involves risk, especially for volatile stocks such as his picks. Gold stocks Mr. Donovan thinks have good upside are Newmont, Barrick Gold, Franco-Nevada, Wheaton Precious Metals and B2Gold.