Pan American Silver Corp (PAAS) Stock Down 4.2% but Still Overvalued -- GF Score: 68/100

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GuruFocus News
05/19/2026 16:39
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On May 19, 2026, Pan American Silver Corp PAAS shares fell 4.2% to $52.87, reflecting a significant downturn in price. Over the past week, the stock has dropped 16.8%, and in the last month, it has decreased by 10.2%. The stock has seen a remarkable 52-week range, with a high of $69.99 and a low of $22.69.

  • GF Valueâ„¢ verdict: Current price of $52.87 vs GF Valueâ„¢ of $32.04, indicating it is 65.0% overvalued.
  • GF Scoreâ„¢ is 68/100, suggesting it is above average in terms of fundamental performance.
  • Most notable signal: No insider transactions have occurred in the last 3 months.

Is PAAS Overvalued or Undervalued?

The current price of Pan American Silver Corp at $52.87 is significantly above its GF Valueâ„¢ estimate of $32.04, leading to a conclusion that the stock is overvalued by approximately 65.0%. This overvaluation presents a risk for potential investors, as the price is not supported by the intrinsic value calculated from historical trading multiples, past business growth, and future performance estimates. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The GF Valuation label categorizes PAAS as significantly overvalued, indicating that the market price does not reflect the company's underlying financial health and potential for growth. With the risk of a price correction, investors may want to proceed with caution, keeping in mind the potential for volatility in the mining sector and external market factors that could further impact stock performance.

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How Does PAAS's Valuation Compare to Its History?

Metric Current Historical
P/E (TTM) 17.0x 24.9x
Forward P/E 11.8x -

The current P/E ratio of 17.0x is 32% below its 5-year median of 24.9x, indicating that the stock is trading below its historical valuation. This P/E analysis is somewhat aligned with the GF Valueâ„¢ verdict of overvaluation, as it suggests that although the stock is cheaper in relative terms compared to its past performance, it remains elevated when compared to the intrinsic value estimate.

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What Does PAAS's GF Scoreâ„¢ Tell Us?

Metric Rating
GF Scoreâ„¢ 68
Financial Strength 8/10
Profitability 7/10
Growth 4/10
Valuation 3/10
Momentum 3/10

The GF Scoreâ„¢ of 68/100 reflects an above-average rating, with Financial Strength being the strongest area at 8/10, indicating solid financial health. Profitability also stands strong at 7/10. However, there are weaknesses in the Growth and Valuation categories, both rated at 3/10, indicating potential concerns about future earnings growth and current valuation levels. This mixed performance in the GF Scoreâ„¢ underscores the complexity of PAAS's investment potential.

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What Are Insiders Doing with PAAS Stock?

Currently, there have been no insider transactions reported for Pan American Silver Corp in the last three months. The absence of insider buying or selling may suggest a lack of strong conviction from executives regarding the stock's future performance at its current price level. This could be interpreted as a neutral signal, as insiders typically have a strong understanding of their company's prospects.

What This Means for Investors

Based on the GF Valueâ„¢ estimate, Pan American Silver Corp is currently overvalued at a price of $52.87 compared to a fair value of $32.04. This significant discrepancy raises concerns about the stock's sustainability and potential price correction in the future.

For the complete analysis, visit the Pan American Silver Corp PAAS stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions

What is PAAS's GF Scoreâ„¢?

PAAS's GF Scoreâ„¢ is 68/100, indicating that it has above-average fundamentals based on its financial strength, profitability, growth potential, valuation, and momentum.

Is PAAS overvalued or undervalued?

According to the GF Valueâ„¢, PAAS is overvalued, with a current price of $52.87 compared to a fair value of $32.04.

What is PAAS's P/E ratio?

PAAS's P/E ratio is 17.0x, which is 32% below its 5-year median of 24.9x, suggesting it is trading below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.