Wheaton Precious Metals Corp Common Shares (Canada) (WPM) Company Bio
Wheaton Precious Metals Corp., formerly known as Silver Wheaton Corporation, is engaged in pure precious metals streaming and generates its revenues from the sale of silver and gold in Mexico, Peru, Canada, Brazil, Argentina, Sweden, and Portugal. The company was founded in 2004 and is based in Vancouver, Canada.
WPM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Wheaton Precious Metals Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Wheaton Precious Metals Corp ranked in the 21th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Wheaton Precious Metals Corp ended up being:
The company's balance sheet shows it gets 95% of its capital from equity, and 5% of its capital from debt. Notably, its equity weight is greater than 88.08% of US equities in the Basic Materials sector yielding a positive free cash flow.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than just 13.61% of the free cash flow producing stocks we're observing.
Wheaton Precious Metals Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SQM, TREX, APD, CENX, and GOLD can be thought of as valuation peers to WPM, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to release its inaugural 2019 Sustainability Report, which highlights the Company's environmental, social and governance ("ESG") performance and achievements. In addition, Wheaton is providing an update on the Community Support and Response Fund ("CSR Fund") launched in April to help combat the impacts of COVID-19 on global communities. All amounts are in US dollars unless otherwise noted.
While stock market corrections are fairly common and bear markets inevitable, the current bear market is unlike anything we've ever seen before. The coronavirus disease 2019 (COVID-19) pandemic has cost more than 39 million Americans their jobs, based on initial jobless claims filed over the previous nine weeks, and at one point, it erased 34% of the value of the S&P 500 in just 33 calendar days. As an investor of 21 years, I've probably followed no industry more closely than gold mining -- and without question, gold stocks have never been more compelling than they are right now.