Franco-Nevada Corporation (FNV) Stock Valuation — PE Analysis
Gold · NYSE
Current Price
$209.46
PE Ratio (TTM)
29.5x
Intrinsic Value
$264.02
+20.7% margin of safety
COMPETITIVE MOAT
↑Unique royalty model
FNV's royalty and streaming model offers diversified revenue streams from various precious metal assets. This reduces direct operational risks and capital intensity inherent in mining.
↑Long-term contracts
Securing long-term agreements with mining operators provides predictable cash flows and exposure to high-quality, long-life assets. This insulates FNV from short-term commodity price volatility.
↑Strong financial discipline
A history of prudent capital allocation and a focus on acquiring accretive royalties demonstrates financial strength. This allows for sustained dividend growth and strategic acquisitions.
INVESTMENT RISKS
↓Commodity price fluctuations
While diversified, FNV's revenue is still tied to the price of gold and other precious metals. Significant downturns can impact profitability and cash flow.
↓Counterparty risk
Reliance on mining partners means FNV is exposed to the operational and financial health of these companies. Mine disruptions or bankruptcies can affect royalty payments.
↓Regulatory and political changes
Changes in mining regulations, taxation, or political instability in regions where FNV holds royalties can negatively impact its business and asset values.
Base case
FNV base case PE valuation
A base case PE valuation for FNV estimates a fair value of about $264.02 per share, against a current price of $209.46. The model assumes 12.1% annual earnings growth, a 29x target PE multiple, and a 10% discount rate.
Intrinsic Value
$264.02
Margin of safety
+20.7%
Expected annual return
+4.7%
Base case assumptions: 12.1% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FNV PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Franco-Nevada Corporation respond.
Open PE Calculator for FNVCompany Overview
Franco-Nevada Corporation functions as a leading royalty and streaming entity, primarily concentrating on gold assets, with operations spanning Latin America, the United States, Canada, and various other international regions. The company's business is organized into two core divisions: Mining and Energy. Through these segments, it maintains a diverse portfolio with strategic investments in valuable metals, including gold, silver, and platinum group metals, alongside energy resources such as crude oil, natural gas, and natural gas liquids. Established in 1983, Franco-Nevada maintains its corporate headquarters in Toronto, Canada.
Financial Metrics — FNV PE Stock Valuation Data
PE Ratio (TTM)
29.5x
PEG Ratio
0.24
Earnings Yield
3.39%
ROE (TTM)
18.7%
Revenue/Share (TTM)
$10.92
Dividend Yield
0.78%
Frequently Asked Questions
What is the PE ratio of FNV?
The trailing twelve-month PE ratio of FNV reflects how much investors pay per dollar of Franco-Nevada Corporation's earnings. This metric is most useful when compared to Gold peers and the company's own historical range.
Is FNV overvalued based on PE ratio?
FNV's PE of 29.5x combined with a PEG ratio of 0.24 provides a growth-adjusted perspective. A PEG below 1.0 suggests FNV may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Gold, a DCF analysis may be more appropriate.
How do I value FNV stock using PE ratio?
To value Franco-Nevada Corporation using PE: (1) Compare the current PE (29.5x) against the Gold median to assess relative pricing, (2) check the PEG ratio (0.24) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FNV?
FNV's PEG ratio is 0.24, calculated by dividing the PE ratio (29.5x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FNV stock valuation?
PE ratio gives a quick relative read — how FNV is priced versus Gold peers. DCF provides an absolute value based on projected free cash flows. For FNV, with a strong ROE of 18.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FNV DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value FNV with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.