Gold · NYSE
Current Price
$228.51
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Franco-Nevada Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for FNVFranco-Nevada Corporation operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally. It operates in two segments, Mining and Energy. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and energy comprising oil, gas, and natural gas liquids. The company was founded in 1983 and is headquartered in Toronto, Canada.
ROIC (TTM)
13.2%
ROE (TTM)
16.3%
FCF Yield
3.38%
Based on trailing twelve-month data, FNV shows a free cash flow per share of N/A and a ROIC of 13.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.38% are important context metrics when evaluating FNV's stock valuation relative to peers.
The intrinsic value of FNV depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether FNV is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $228.51. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Franco-Nevada Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Gold industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FNV's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Franco-Nevada Corporation, this means projecting how much free cash flow the Gold will produce over the next 5-10 years, then discounting those amounts to today's dollars. FNV's ROIC of 13.2% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FNV, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
