If you are wondering whether Discovery Silver’s recent share price run still leaves room for value, this article walks through what the numbers actually say about the stock. The share price closed at C$11.48, with returns of 14.1% over the last 7 days, 30.8% over the last 30 days, 36.3% year to date, and very large gains over 1 year, 3 years and 5 years that are all several times the starting level. These price moves have put Discovery Silver firmly on many investors’ radar. Recent company updates and sector news have added more attention to the story. This backdrop makes it a useful time to separate sentiment from what can be supported by cash flows, assets and peer comparisons. Simply Wall St currently gives Discovery Silver a valuation score of 0 out of 6. In the next sections we will look at how different valuation methods arrive at that view and finish with a practical framework you can use to judge value for yourself.
Discovery Silver scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Discovery Silver Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes estimates of the cash a business could generate in the future and discounts those amounts back to today, to arrive at an estimate of what the company might be worth now.
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 reported at $69.53 million. Analyst and extrapolated projections used by Simply Wall St show annual free cash flow data points around $214 million for 2026 and 2027, with a series of forecasts running out to 2035, each discounted back to present value.
Putting all of those discounted cash flows together, the DCF model arrives at an estimated intrinsic value of $7.52 per share. Compared with the current share price of C$11.48, the model suggests the stock is 52.6% overvalued according to these assumptions.
On this cash flow view, the market price sits well above the modelled value.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Discovery Silver may be overvalued by 52.6%. Discover 876 undervalued stocks or create your own screener to find better value opportunities.
DSV Discounted Cash Flow as at Jan 2026
Approach 2: Discovery Silver Price vs Sales
For companies where earnings can be volatile, using the P/S ratio can be a useful way to compare what investors are paying for each dollar of revenue rather than each dollar of profit.
In general, higher growth expectations and lower perceived risk can support a higher P/S multiple. In contrast, slower growth or higher risk usually go with a lower, more conservative range. So the question is whether Discovery Silver’s current P/S lines up with what you might consider normal for its profile.
Discovery Silver currently trades on a P/S of 18.02x. That sits above the Metals and Mining industry average of 9.30x and also above the peer group average of 15.79x. Simply Wall St’s Fair Ratio model, which estimates what a more appropriate multiple could be after considering factors such as earnings growth, industry, profit margin, market cap and risks, arrives at a P/S of 10.45x.
This Fair Ratio can often be more informative than a straight peer or industry comparison because it adjusts for company specific characteristics instead of assuming all miners deserve the same multiple. Compared with the current 18.02x, the Fair Ratio of 10.45x points to Discovery Silver trading at a richer level than this framework implies.
Result: OVERVALUED
TSX:DSV P/S Ratio as at Jan 2026
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Upgrade Your Decision Making: Choose your Discovery Silver Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way for you to write the story behind your numbers, including your own view of fair value and future revenue, earnings and margins for Discovery Silver.
A Narrative connects three pieces in one place: what you think is happening with the business, how that translates into a financial forecast, and what you believe is a reasonable value per share based on those assumptions.
On Simply Wall St, within the Community page used by millions of investors, Narratives are an accessible tool that let you compare your Fair Value to the current share price, so you can decide for yourself whether the gap between Price and Fair Value suggests it might be a time to buy, hold, or sell.
Narratives are also refreshed when new information such as news or earnings is added to the platform. You might see one Discovery Silver Narrative that assumes a relatively low fair value alongside another that uses much higher revenue or margin expectations to arrive at a much higher fair value, reflecting how different investors can read the same company in very different ways.
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.
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