First Majestic Silver Corp. (AG) Stock Valuation — DCF Analysis
Silver · NYSE
Current Price
$17.65
Intrinsic Value
$24.5
+28.0% margin of safety
COMPETITIVE MOAT
↑Silver Price Leverage
As a pure-play silver producer, First Majestic benefits disproportionately from rising silver prices. This leverage amplifies profitability when silver markets are strong, as seen in recent price surges.
↑Operational Scale and Assets
The company possesses significant silver reserves and multiple producing mines in Mexico. This established operational footprint provides a foundation for consistent production and cost management.
↑Dividend Growth
Recent dividend hikes signal confidence in future cash flows and a commitment to returning value to shareholders. This can attract income-focused investors and support share price.
INVESTMENT RISKS
↓Commodity Price Volatility
Silver prices are inherently volatile and subject to global economic conditions and speculative trading. Significant price downturns can severely impact revenue and profitability.
↓Geopolitical and Regulatory Environment
Operating primarily in Mexico exposes First Majestic to country-specific political risks and potential changes in mining regulations or taxation. These can disrupt operations and increase costs.
↓Stock Valuation Concerns
Despite recent price drops, some analyses suggest the stock may still be overvalued. This indicates potential downside risk if market sentiment shifts or earnings do not meet expectations.
Base case
AG base case valuation
A base case discounted cash flow model for AG estimates an intrinsic value of about $24.5 per share, against a current price of $17.65. The model assumes 11.4% annual free cash flow growth, a 10.0% discount rate, and a 16x exit multiple.
Intrinsic Value
$24.5
Margin of safety
+28.0%
Expected annual return
+6.8%
Base case assumptions: 11.4% annual growth, 10.0% discount rate, 16x exit multiple, 5 year projection. Data as of 2026-06-12.
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
16.1x
EV/EBITDA
9.0x
FCF Yield
6.22%
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 16.1x and FCF yield of 6.22% 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 $17.65, 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 16.1x with a free cash flow yield of 6.22%. This P/FCF is in a moderate range. 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% suggests the company may face challenges generating returns above 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 9.0x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.