Franco-Nevada Corporation (FNV) Stock Valuation — PE Analysis
Gold · NYSE
Current Price
$214.37
PE Ratio (TTM)
30.2x
Intrinsic Value
$153.97
-39.2% margin of safety
COMPETITIVE MOAT
↑Diversified Royalties & Streams
FNV holds a vast portfolio of gold, silver, and platinum group metal royalties and streams. This diversification across geographies and producers mitigates single-asset or single-jurisdiction risk.
↑Low-Cost Operating Model
As a royalty and stream company, FNV has minimal direct exposure to mining operational risks and capital expenditures. This results in a highly scalable and profitable business model.
↑Long-Term Contractual Agreements
The company's revenue is secured by long-term, often life-of-mine, contracts. These agreements provide predictable cash flows and insulate FNV from short-term commodity price volatility.
INVESTMENT RISKS
↓Concentration in Key Assets
Despite diversification, a few large royalty assets contribute a substantial portion of FNV's revenue. Any disruption to these specific mines could materially impact financial performance.
↓Acquisition Risk and Valuation
FNV relies on acquiring new royalties and streams to grow. Overpaying for assets or failing to find attractive opportunities could hinder future growth prospects.
↓Regulatory and Tax Changes
Changes in mining regulations, tax laws, or royalty frameworks in the jurisdictions where FNV operates could negatively affect its profitability and asset values.
Base case
FNV base case PE valuation
A base case PE valuation for FNV estimates a fair value of about $153.97 per share, against a current price of $214.37. The model assumes -0.7% annual earnings growth, a 30x target PE multiple, and a 10% discount rate.
Intrinsic Value
$153.97
Margin of safety
-39.2%
Expected annual return
-6.4%
Base case assumptions: -0.7% annual earnings growth, 30x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 operates as a royalty and stream company focused on precious metals in South America, Central America, Mexico, the United States, Canada, Australia, Europe, and Africa. It operates through Precious Metals, Other Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. The company was founded in 1986 and is headquartered in Toronto, Canada.
Financial Metrics — FNV PE Stock Valuation Data
PE Ratio (TTM)
30.2x
PEG Ratio
0.25
Earnings Yield
3.32%
ROE (TTM)
18.7%
Revenue/Share (TTM)
$10.92
Dividend Yield
0.77%
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 30.2x combined with a PEG ratio of 0.25 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (30.2x) against the Gold median to assess relative pricing, (2) check the PEG ratio (0.25) 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 0.25, calculated by dividing the PE ratio (30.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.