First Majestic Silver Corp. (AG) Intrinsic Value & DCF Valuation
Silver · NYSE
Current Price
$15.22
Intrinsic Value
$16.15
+5.8% margin of safety
What Is First Majestic Silver Corp.'s Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of First Majestic Silver Corp. (AG) at $16.15 per share, compared with a market price of $15.22, a margin of safety of +5.8%. The base case assumes 3.8% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $12.59 to $20.28. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is First Majestic Silver Corp. (AG) Undervalued?
At $15.22, AG trades about 5.8% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑High-Grade Silver Deposits
First Majestic operates mines with historically high silver grades. This allows for lower production costs per ounce, creating a cost advantage over competitors with lower-grade ore bodies.
↑Operational Expertise in Silver Mining
The company possesses deep operational knowledge and experience in the specific challenges of silver extraction. This expertise translates to efficient mine management and optimized production processes.
↑Strategic Asset Portfolio
First Majestic's portfolio of silver mines, particularly in Mexico, offers a concentrated exposure to a key silver-producing region. This strategic positioning can provide logistical and operational synergies.
INVESTMENT RISKS
↓Mine Divestitures and Asset Concentration
The recent sale of the San Martin and Del Toro mines indicates a strategy of portfolio rationalization. This reduces the company's asset base and potentially concentrates future production risk on fewer operations.
↓Geopolitical and Jurisdictional Risk
Operating primarily in Mexico exposes First Majestic to country-specific political, economic, and social risks. Changes in government policy or local community relations can impact operations and profitability.
↓Exploration and Development Uncertainty
While new permits and drilling at Santo Niño and Navidad are positive, the success of future production hinges on the outcomes of exploration and development. There's inherent uncertainty in discovering and economically extracting new mineral resources.
Base case
AG base case valuation
Intrinsic Value
$16.15
Margin of safety
+5.8%
Expected annual return
+1.2%
Base case assumptions: 3.8% annual growth, 10.0% discount rate, 14x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the AG valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for First Majestic Silver Corp. respond.
Open DCF Calculator for AGCompany Overview
First Majestic Silver Corp. is a North American mining company dedicated to the exploration, acquisition, development, and operation of mineral properties, primarily concentrating on silver and gold output. The company fully owns and operates a portfolio of significant mining assets. In Mexico, these include the San Dimas Silver/Gold Mine (71,868 hectares in Durango and Sinaloa), the Santa Elena Silver/Gold Mine (102,244 hectares in Sonora), the La Encantada Silver Mine (4,076 hectares in Coahuila, complemented by 1,343 hectares of surface rights), the La Parrilla Silver Mine (69,478 hectares in Durango), the Del Toro Silver Mine (comprising 3,815 hectares of mining concessions and 219 hectares of surface rights in Zacatecas), the San Martin Silver Mine (12,795 hectares across 33 mining concessions in Jalisco), and the La Guitarra Silver Mine (39,714 hectares). Beyond Mexico, its holdings extend to the Jerritt Canyon gold mine, spanning approximately 30,821 hectares in Elko County, Nevada. Additionally, First Majestic maintains an interest in the Springpole project, a gold and silver prospect encompassing around 41,913 hectares in Ontario, Canada. Established in 1979, the firm initially operated as First Majestic Resource Corp. before adopting its current name, First Majestic Silver Corp., in November 2006. Its corporate headquarters are located in Vancouver, Canada.
Financial Metrics — AG Stock Valuation Data
Revenue/Share (TTM)
$3.03
FCF/Share (TTM)
$1.10
ROIC (TTM)
7.4%
ROE (TTM)
10.9%
P/FCF
13.9x
EV/EBITDA
7.7x
FCF Yield
7.21%
Debt/Equity
0.11x
Based on trailing twelve-month data, AG shows a free cash flow per share of $1.10 and a ROIC of 7.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 13.9x and FCF yield of 7.21% are important context metrics when evaluating AG's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of AG?
First Majestic Silver Corp. currently generates $1.10 in free cash flow per share. At the current price of $15.22, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is AG undervalued?
AG trades at a P/FCF ratio of 13.9x with a free cash flow yield of 7.21%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether AG is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value AG stock using DCF?
To perform a DCF valuation on First Majestic Silver Corp.: (1) Start with the trailing free cash flow per share ($1.10) as the base, (2) project future FCF growth over 5-10 years based on Silver industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting AG's risk profile — with a debt-to-equity of 0.11x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to AG?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For First Majestic Silver Corp., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Silver trends, then discounting those amounts to today's dollars. AG's ROIC of 7.4% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect AG stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For AG, with a debt-to-equity ratio of 0.11x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 7.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See AG PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value AG with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.