Is It Too Late to Consider Wheaton Precious Metals After Its 97.1% Surge in 2025?

• If you are wondering whether Wheaton Precious Metals remains attractively priced after its huge run, or if you would be paying up at the top, this breakdown will help you think through what the stock might be worth today.
• The share price has climbed about 1.9% over the last week and 12.7% over the last month. It has also surged 97.1% year to date, with a 222.3% gain over five years reshaping how the market prices its prospects.
• These moves have come as investors have increased their exposure to precious metals and royalty streaming models, with Wheaton often highlighted as a relatively lower risk way to participate in gold and silver trends. At the same time, shifting expectations around interest rates and inflation have revived the broader appeal of real asset hedges, helping push high quality names such as Wheaton into the market's focus.
• Despite that strength, the stock only scores 1 out of 6 on our undervaluation checks. This raises useful questions about whether traditional valuation metrics are capturing the full story. Next, we will outline the main valuation approaches investors often use for Wheaton, then conclude with a more holistic way to think about what the market may be pricing in.

Wheaton Precious Metals scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Wheaton Precious Metals Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow model estimates what a business is worth by projecting its future cash flows and discounting them back to today, using a required return to reflect risk and time.

For Wheaton Precious Metals, the latest twelve month Free Cash Flow is about $526 million. Analysts provide several years of detailed forecasts, after which Simply Wall St extrapolates growth, leading to a projected Free Cash Flow of roughly $3.7 billion in ten years. These cash flows are modeled using a 2 Stage Free Cash Flow to Equity approach, where higher near term growth gradually tapers to a more mature rate over time.

Discounting all those projected cash flows back to today suggests an intrinsic value of about $188.58 per share. Compared to the current share price, this implies the stock is trading at a 12.6% discount. In other words, the DCF view sees Wheaton as modestly undervalued rather than priced for perfection.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Wheaton Precious Metals is undervalued by 12.6%. Track this in your watchlist or portfolio, or discover 917 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Wheaton Precious Metals.

Approach 2: Wheaton Precious Metals Price vs Earnings

For profitable companies like Wheaton Precious Metals, the Price to Earnings, or PE, ratio is a useful shorthand for how many dollars investors are willing to pay for each dollar of current earnings. It naturally ties valuation to the bottom line, making it a practical yardstick for mature, cash generative businesses.

What counts as a normal PE depends on how quickly earnings are expected to grow and how risky those earnings are. Faster growth and lower perceived risk usually justify a higher multiple, while cyclical or uncertain earnings tend to trade on lower PE ratios.

Wheaton currently trades on a PE of about 54.23x, which is well above the metals and mining industry average of roughly 20.88x and higher than the peer group average of about 28.53x. Simply Wall St also calculates a proprietary Fair Ratio of 24.49x for Wheaton, which represents the PE you might expect given its specific growth profile, margins, size, industry and risk factors.

This Fair Ratio is more informative than simple peer or industry comparisons because it is tailored to Wheaton’s fundamentals rather than generic group averages. Setting the Fair Ratio of 24.49x against the current 54.23x suggests the stock is trading at a premium that fundamentals alone do not fully justify.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1465 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Wheaton Precious Metals Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simple stories investors create on Simply Wall St’s Community page to connect their view of a company’s future revenue, earnings and margins to a financial forecast and a Fair Value they can compare directly with today’s share price.

Instead of only relying on static multiples like PE, a Narrative lets you spell out why you think Wheaton’s streaming pipeline, commodity prices, taxes and risks will evolve the way you expect. The platform then automatically turns that story into projected cash flows, a Fair Value estimate and clear buy or sell guidance based on whether that Fair Value sits above or below the current market price.

Because Narratives on the platform are dynamic, they update as new earnings, news and analyst revisions arrive. This means you can see in real time how the bullish view that rising gold and silver prices plus 15.7% revenue growth justify a Fair Value near CA$183 compares with more cautious community Narratives that assume lower earnings, higher risk and therefore a meaningfully lower Fair Value. This gives you a transparent range of perspectives to benchmark your own decision against.

Do you think there's more to the story for Wheaton Precious Metals? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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