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Silver Exposure With Silver Wheaton (NYSE:SLW)
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We look at Silver Wheaton (NYSE:SLW) a company in the Silver industry getting a lot of share market attention at present, to assess if it provides value for investors considering buying or selling it. Currently Silver Wheaton is trading at $21.42 after moving down -1.34% in the previous day of trading.
SLW is trading with a trailing 12 month P/E multiple of 31.50 and an estimated forward P/E multiple of 27.25. The stock has an estimated 5 year annual growth of 19.94% and a PEG multiple of 1.58.
Stock Performance: Click here for a free comprehensive Trend Analysis Report Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if Silver Wheaton is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.
That is to say, P/E simply doesn’t account for the long term prospects of SLW. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of SLW being 1.58, we consider Silver Wheaton to likely be priced at fair value.
This analysis means that value buyers who do not currently hold Silver Wheaton (NYSE:SLW) should probably look for better value alternatives and investors currently holding the stock should either continue to hold or sell and look for alternatives.
The mean analyst 12 month target price for Silver Wheaton (NYSE:SLW) is currently $26.94 or 25.77% above the current price. Additionally, the stock has been as high as $27.66 and as low as $16.57 in the last 52 weeks. Analysts are estimating that SLW will report earnings per share of $0.18 next quarter.
