Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Wheaton Precious Metals
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
=== Valuation: >US$50/share coming into focus === For the first time, Edison Investment Research has used a CAPM-type method to value WPM. In this case, applying a nominal discount rate of 9.0% to cash flows implies a ‘terminal’ valuation for the company at end-FY26 of US$59.98 (C$77.83) per share assuming zero subsequent long-term growth in real cash flows. Alternatively, Edison calculates that WPM’s current share price of C$49.54 discounts a long-term compound annual average growth rate in nominal cash flows per share of just 3.2%, which is lower even than average inflation in the past nine years. Otherwise, under normal circumstances and assuming no material purchases of additional streams in the foreseeable future (which Edison Investment Research thinks unlikely), Edison Investment Research forecasts a value per share for WPM of US$51.85 or C$67.29 or £42.60 in FY22, based on a 30.1x multiple of earnings, or US$62.02 or C$80.47 or £50.96 in FY26. In the meantime, WPM’s shares are trading on near-term financial ratios that are cheaper than those of its peers on at least 72% of common valuation measures if Edison forecasts are used or 61% if consensus forecasts are used. If WPM’s shares were therefore to trade at the same level as the average of its peers, then Edison calculates that its year one share price should be US$49.74 (C$64.55 or £40.87), based on its forecasts for FY22. Alternatively, if precious metals return to favour, then Edison believes that a near-term US$66.34 (C$86.08 or £54.51) per share valuation is possible.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)