Wheaton Precious Metals (TSX:WPM) Lifts Dividend And Reaffirms Guidance, Is The Stock Still Cheap?
Wheaton Precious Metals (TSX:WPM) has just reported second quarter 2026 results, with higher sales and net income, reaffirmed multi year production guidance, and announced an 18% increase in its quarterly dividend.
See our latest analysis for Wheaton Precious Metals.
These results come after a strong run in Wheaton Precious Metals' share price, with a 22.08% 1 month share price return and a 15.01% year to date share price return. The 5 year total shareholder return of 260.32% points to sustained investor interest.
If this earnings update has you looking beyond a single stock, it can be useful to see how other gold producers are trading and growing right now through the 30 elite gold producer stocks
Wheaton Precious Metals now trades at a sizeable discount to analyst targets after a sharp move in the share price. Is the market right to stay cautious, or is the valuation starting to look too pessimistic?
Most Popular Narrative: 23.3% Undervalued
The most followed narrative puts Wheaton Precious Metals' fair value at CA$242.72, well above the last close of CA$186.25. That gap rests on some specific growth and profitability assumptions that go well beyond the latest quarter.
Wheaton's strong financial position, with $1B in cash and a $2B undrawn credit facility, provides flexibility to pursue additional accretive streaming deals and capitalize on an industry trend of rising capital requirements for miners, expanding its addressable market and supporting long-term revenue expansion and EPS growth.
Want to see what sits behind that confidence in Wheaton Precious Metals? The narrative leans heavily on future output, margins, and a richer profit multiple than many investors might expect.
Result: Fair Value of CA$242.72 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upbeat narrative on Wheaton Precious Metals also leans on optimistic commodity price and tax assumptions, so weaker metal pricing or higher effective taxes could quickly challenge it.
Find out about the key risks to this Wheaton Precious Metals narrative.
Another View On Wheaton Precious Metals Valuation
The analyst narrative suggests Wheaton Precious Metals is 23.3% undervalued at CA$242.72, but the current P/E of 29.7x paints a different picture. That is far above the Canadian Metals and Mining industry at 15.3x, the peer average at 16.4x, and the fair ratio of 17.1x. If the market moves closer to that fair ratio, the share price would need to adjust. Which signal do you trust more: the growth story or the richer multiple?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Sentiment on Wheaton Precious Metals is mixed, with both risks and rewards in focus. Consider moving quickly and weighing the evidence for yourself through the 2 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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