We’ve recently updated our valuation analysis.

Wheaton Precious Metals Valuation

Is WPM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WPM?

Other financial metrics that can be useful for relative valuation.

WPM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.9x
Enterprise Value/EBITDA21.3x
PEG Ratio-18.8x

Price to Earnings Ratio vs Peers

How does WPM's PE Ratio compare to its peers?

The above table shows the PE ratio for WPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.4x
ABX Barrick Gold
14.7x5.4%CA$38.0b
FNV Franco-Nevada
35.8x-0.8%CA$36.9b
YRI Yamana Gold
19.4x-3.4%CA$6.9b
K Kinross Gold
15.7x23.2%CA$6.9b
WPM Wheaton Precious Metals
21.4x-1.1%CA$23.2b

Price-To-Earnings vs Peers: WPM is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (21.4x).


Price to Earnings Ratio vs Industry

How does WPM's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.8%
n/an/an/a

Price-To-Earnings vs Industry: WPM is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the Canadian Metals and Mining industry average (10.5x)


Price to Earnings Ratio vs Fair Ratio

What is WPM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WPM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: WPM is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).


Share Price vs Fair Value

What is the Fair Price of WPM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WPM (CA$51.26) is trading below our estimate of fair value (CA$53.19)

Significantly Below Fair Value: WPM is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WPM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$51.26
CA$61.82
+20.6%
11.5%CA$69.87CA$50.00n/a9
Nov ’23CA$44.95
CA$62.17
+38.3%
13.5%CA$72.86CA$47.59n/a9
Oct ’23CA$44.73
CA$65.89
+47.3%
14.1%CA$79.92CA$50.04n/a9
Sep ’23CA$39.11
CA$65.28
+66.9%
13.6%CA$77.04CA$48.24n/a8
Aug ’23CA$43.94
CA$67.27
+53.1%
12.2%CA$76.00CA$52.83n/a8
Jul ’23CA$46.38
CA$73.67
+58.8%
10.4%CA$86.84CA$61.95n/a8
Jun ’23CA$52.38
CA$71.81
+37.1%
11.0%CA$84.62CA$59.15n/a8
May ’23CA$57.58
CA$73.11
+27.0%
13.0%CA$88.30CA$60.00n/a8
Apr ’23CA$61.13
CA$68.72
+12.4%
12.0%CA$83.34CA$56.30n/a10
Mar ’23CA$58.42
CA$68.35
+17.0%
12.9%CA$85.15CA$56.05n/a10
Feb ’23CA$51.51
CA$69.50
+34.9%
14.4%CA$85.00CA$52.03n/a9
Jan ’23CA$54.28
CA$70.36
+29.6%
16.2%CA$89.96CA$52.66n/a9
Dec ’22CA$52.00
CA$70.99
+36.5%
18.1%CA$92.48CA$52.43n/a9
Nov ’22CA$49.28
CA$69.30
+40.6%
16.7%CA$87.80CA$50.69CA$44.9510
Oct ’22CA$46.72
CA$72.22
+54.6%
15.3%CA$89.80CA$51.84CA$44.7310
Sep ’22CA$56.55
CA$75.01
+32.6%
16.2%CA$92.53CA$52.70CA$39.119
Aug ’22CA$57.63
CA$73.47
+27.5%
16.0%CA$92.42CA$51.13CA$43.949
Jul ’22CA$54.64
CA$71.83
+31.5%
16.3%CA$89.31CA$48.20CA$46.389
Jun ’22CA$58.31
CA$71.83
+23.2%
16.3%CA$89.31CA$48.20CA$52.389
May ’22CA$50.99
CA$70.90
+39.1%
16.9%CA$89.34CA$49.62CA$57.589
Apr ’22CA$50.06
CA$74.63
+49.1%
18.5%CA$90.00CA$49.04CA$61.139
Mar ’22CA$45.11
CA$75.85
+68.1%
18.1%CA$89.86CA$49.15CA$58.428
Feb ’22CA$55.67
CA$77.52
+39.3%
17.5%CA$90.97CA$49.76CA$51.518
Jan ’22CA$53.16
CA$78.55
+47.8%
16.6%CA$90.57CA$52.66CA$54.288
Dec ’21CA$53.01
CA$79.47
+49.9%
14.9%CA$89.82CA$53.22CA$52.008
Nov ’21CA$61.14
CA$79.42
+29.9%
14.7%CA$90.00CA$53.83CA$49.288

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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