Gold · NYSE
Current Price
$124.89
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Wheaton Precious Metals Corp. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Wheaton Precious Metals Corp., a streaming company, primarily sells precious metals in Canada and internationally. The company sells gold, silver, palladium, and cobalt deposits. It has a portfolio of interests in the 23 operating mines and 13 development projects. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.
ROIC (TTM)
15.4%
ROE (TTM)
18.5%
FCF Yield
1.00%
Based on trailing twelve-month data, WPM shows a free cash flow per share of N/A and a ROIC of 15.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.00% are important context metrics when evaluating WPM's stock valuation relative to peers.
The intrinsic value of WPM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether WPM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $124.89. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Wheaton Precious Metals Corp.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Gold industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WPM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Wheaton Precious Metals Corp., this means projecting how much free cash flow the Gold will produce over the next 5-10 years, then discounting those amounts to today's dollars. WPM's ROIC of 15.4% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For WPM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
