Assessing Wheaton Precious Metals (TSX:WPM) Valuation After New Gold Stream Deal And Sustainability Recognition
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Wheaton Precious Metals (TSX:WPM) has drawn fresh attention after securing a significant gold stream connected to the Hemlo mine acquisition and earning a place on Corporate Knights’ 2026 Global 100 Most Sustainable Corporations list.
See our latest analysis for Wheaton Precious Metals.
The recent Hemlo gold stream, sustainability recognition and analyst upgrades have arrived alongside a 44.3% 90 day share price return and a very large 5 year total shareholder return above 300%. This suggests strong momentum rather than a short lived spike.
If this kind of momentum in precious metals has your attention, it could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership.
With Wheaton Precious Metals trading close to its consensus price target and already posting very strong multi year returns, the key question now is whether recent growth and sustainability wins leave any upside, or if the market is already pricing in future gains.
Based on the current P/E of 65.2x against a last close of CA$198.25, Wheaton Precious Metals is priced well above both peers and its estimated fair level.
The P/E multiple compares the share price to earnings per share, so a higher ratio usually means the market is paying more today for each dollar of current earnings. For a precious metals streamer, that typically reflects expectations around future cash flows, commodity price sensitivity and the perceived resilience of the business model.
In Wheaton Precious Metals’ case, the P/E of 65.2x is described as expensive compared with the peer average of 35.9x and the wider Canadian Metals and Mining industry average of 26x. It also sits well above the estimated fair P/E of 27.4x, a level the market could move towards if expectations cool or earnings catch up, which underlines how much optimism is currently built into the price.
Explore the SWS fair ratio for Wheaton Precious Metals
Result: Price to Earnings of 65.2x (OVERVALUED)
However, that premium valuation leaves little margin for error if precious metal prices soften or if revenue and net income growth of 14.8% and 17% slow.
Find out about the key risks to this Wheaton Precious Metals narrative.
While the 65.2x P/E paints Wheaton Precious Metals as expensive, our DCF model points to a fair value of CA$187.11 versus the current CA$198.25. That implies the shares are overvalued on cash flow assumptions. This raises a simple question: is this a premium you are comfortable paying?
