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If you are wondering whether Discovery Silver’s recent share price run still leaves any room for value, you are not alone. That is exactly what this article is going to tackle.
The stock has posted returns of 20.7% over the last 7 days, 38.1% over 30 days and 39.8% year to date, with very large gains over 1 and 3 years that are around 7 times the starting level.
These sharp moves have put Discovery Silver firmly on the radar of investors looking at silver related names, with recent attention focusing on the company as the share price reacts to shifting sentiment in the sector. News coverage has largely centred on how the stock’s strong multi year run and recent momentum fit into views on silver exposure in a portfolio.
Despite that performance, Discovery Silver currently scores 0/6 on our valuation checks, which you can see in full in its valuation score. We will look at what traditional valuation methods say about the shares, then finish by discussing a more complete way to think about value that goes beyond a single number.
Discovery Silver scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s value using a required rate of return. The idea is simple: you are asking what those future cash flows are worth in today’s dollars.
For Discovery Silver, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is $69.53 million, and analysts have provided forecasts out to 2027, with Simply Wall St extrapolating further to build a ten year path of cash flows. By 2035, the model is using projected free cash flow of around $248.99 million.
Discounting this stream of cash flows back to today produces an estimated intrinsic value of $7.50 per share. When this is compared with the current share price, the DCF output implies the stock is around 57.0% overvalued on this method alone.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Discovery Silver may be overvalued by 57.0%. Discover 877 undervalued stocks or create your own screener to find better value opportunities.
DSV Discounted Cash Flow as at Jan 2026
Story Continues
For companies where revenue is a key reference point, the P/S ratio can be a useful shortcut for comparing what the market is paying for each dollar of sales. It is particularly handy when earnings are less helpful or more volatile, because it focuses on the top line rather than profits.
In general, higher growth expectations or lower perceived risk can support a higher “normal” P/S multiple, while slower growth or higher risk usually point to a lower one. Discovery Silver currently trades on a P/S ratio of 18.50x. That sits above the Metals and Mining industry average of 9.30x and also above the peer group average of 16.37x.
Simply Wall St’s Fair Ratio for Discovery Silver is 10.08x. This is a proprietary estimate of what the P/S multiple might be, given factors such as the company’s earnings growth profile, its industry, profit margins, market cap and specific risks. Because it blends these company level inputs, it can give a more tailored view than a simple comparison with peers or the broad industry average. Comparing that Fair Ratio of 10.08x with the current 18.50x suggests the shares are trading above this reference point.
Result: OVERVALUED
TSX:DSV P/S Ratio as at Jan 2026
P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1417 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to think about valuation, so let us introduce you to Narratives, which let you attach a clear story to your numbers, including your view on fair value and your expectations for future revenue, earnings and margins. A Narrative links what you believe about a company to a financial forecast and then to a fair value, so you are not just looking at ratios in isolation. On Simply Wall St, millions of investors use Narratives on the Community page as an easy tool to set their own assumptions, compare Fair Value with the current share price and decide whether the gap is big enough to act on. These Narratives update automatically when fresh information arrives, such as new earnings or material news, so your view moves with the company rather than staying frozen. For Discovery Silver, one investor might build a Narrative with a higher fair value based on more optimistic margin and production assumptions, while another might set a lower fair value using more cautious revenue and cost estimates, and both perspectives can sit side by side on the platform.
Do you think there’s more to the story for Discovery Silver? Head over to our Community to see what others are saying!
TSX:DSV 1-Year Stock Price Chart
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.
Companies discussed in this article include DSV.TO.
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