Wheaton Precious Metals Valuation

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

WPM (CA$87.36) is trading below our estimate of [[fair value]] (CA$117.73)

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

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

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$87.36) is trading below our estimate of fair value (CA$117.73)

Significantly Below Fair Value: WPM is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As WPM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WPM. This is calculated by dividing WPM's market cap by their current earnings.
What is WPM's PE Ratio?
PE Ratio	45.7x
Earnings	US$609.43m
Market Cap	US$27.86b

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/Revenue	22.3x
Enterprise Value/EBITDA	29.7x
PEG Ratio	5.5x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21.6x
ABX Barrick Gold	18.5x	20.0%	CA$42.7b
K Kinross Gold	16.7x	-1.8%	CA$17.6b
AGI Alamos Gold	33.7x	35.0%	CA$11.7b
LUG Lundin Gold	17.5x	21.8%	CA$7.9b
WPM Wheaton Precious Metals	45.7x	8.3%	CA$39.6b

Price-To-Earnings vs Peers: WPM is expensive based on its Price-To-Earnings Ratio (45.7x) compared to the peer average (21.6x).

Price to Earnings Ratio vs Industry

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

47 Companies	Price / Earnings	Estimated Growth	Market Cap
IMG IAMGOLD	4.4x	-2.6%	US$3.36b
SLI Standard Lithium	2.6x	n/a	US$302.97m
DRX ADF Group	4.9x	n/a	US$201.60m
APM Andean Precious Metals	2.7x	-42.9%	US$155.85m

47 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: WPM is expensive based on its Price-To-Earnings Ratio (45.7x) compared to the Canadian Metals and Mining industry average (13.5x).

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 Ratio	45.7x
Fair PE Ratio	19.7x

Price-To-Earnings vs Fair Ratio: WPM is expensive based on its Price-To-Earnings Ratio (45.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$87.36	CA$105.13 +20.3%	5.4%	CA$111.83	CA$95.07	n/a	7
Dec ’25	CA$87.12	CA$104.59 +20.1%	5.3%	CA$111.39	CA$95.08	n/a	7
Nov ’25	CA$90.93	CA$102.89 +13.1%	6.4%	CA$110.18	CA$91.30	n/a	7
Oct ’25	CA$82.55	CA$94.22 +14.1%	8.4%	CA$107.18	CA$82.33	n/a	7
Sep ’25	CA$83.29	CA$89.33 +7.3%	6.3%	CA$100.00	CA$80.46	n/a	7
Aug ’25	CA$81.11	CA$90.52 +11.6%	6.4%	CA$99.99	CA$82.03	n/a	7
Jul ’25	CA$71.73	CA$83.88 +16.9%	4.1%	CA$89.99	CA$79.11	n/a	8
Jun ’25	CA$74.65	CA$83.84 +12.3%	4.1%	CA$89.82	CA$79.05	n/a	8
May ’25	CA$72.85	CA$81.88 +12.4%	4.8%	CA$90.63	CA$76.23	n/a	8
Apr ’25	CA$64.86	CA$74.28 +14.5%	6.4%	CA$82.39	CA$67.13	n/a	8
Mar ’25	CA$56.93	CA$74.47 +30.8%	6.4%	CA$82.69	CA$67.16	n/a	8
Feb ’25	CA$64.34	CA$76.19 +18.4%	3.7%	CA$82.25	CA$73.12	n/a	8
Jan ’25	CA$65.37	CA$72.98 +11.6%	4.8%	CA$77.74	CA$66.08	n/a	8
Dec ’24	CA$66.84	CA$72.31 +8.2%	5.7%	CA$78.90	CA$66.19	CA$87.12	7
Nov ’24	CA$59.72	CA$73.47 +23.0%	5.8%	CA$79.97	CA$66.94	CA$90.93	7
Oct ’24	CA$55.12	CA$73.41 +33.2%	5.5%	CA$80.87	CA$68.15	CA$82.55	7
Sep ’24	CA$58.74	CA$70.75 +20.4%	9.7%	CA$80.58	CA$55.49	CA$83.29	9
Aug ’24	CA$58.20	CA$71.34 +22.6%	10.6%	CA$80.40	CA$54.26	CA$81.11	9
Jul ’24	CA$57.29	CA$71.23 +24.3%	11.2%	CA$80.60	CA$55.64	CA$71.73	10
Jun ’24	CA$62.18	CA$72.83 +17.1%	11.1%	CA$81.25	CA$57.27	CA$74.65	10
May ’24	CA$66.33	CA$71.25 +7.4%	8.1%	CA$80.44	CA$58.21	CA$72.85	11
Apr ’24	CA$65.09	CA$66.29 +1.9%	8.1%	CA$75.14	CA$57.67	CA$64.86	10
Mar ’24	CA$56.62	CA$67.26 +18.8%	7.3%	CA$76.48	CA$57.02	CA$56.93	10
Feb ’24	CA$60.88	CA$65.53 +7.6%	7.5%	CA$69.83	CA$55.81	CA$64.34	9
Jan ’24	CA$52.90	CA$63.09 +19.3%	11.2%	CA$70.95	CA$50.07	CA$65.37	9
Dec ’23	CA$53.89	CA$62.19 +15.4%	11.6%	CA$70.14	CA$50.20	CA$66.84	9

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