First Majestic Silver Corp. (AG) Fair Value & PE Analysis
Silver · NYSE
Current Price
$16.71
PE Ratio (TTM)
24.0x
Intrinsic Value
$19.49
+14.3% margin of safety
What Is First Majestic Silver Corp.'s Fair Value?
As of 2026-10-08, applying a 23.9x earnings multiple to First Majestic Silver Corp.'s (AG) earnings per share of $0.7 yields a fair value estimate of $19.49 per share, versus a market price of $16.71.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $16.05 to $23.43. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · AG intrinsic value (DCF view)
Is First Majestic Silver Corp. (AG) Overvalued?
At $16.71, AG trades about 14.3% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑High-Grade Ore Bodies
First Majestic operates mines with exceptionally high-grade silver and gold deposits. This inherent quality of their resources provides a significant cost advantage over competitors with lower-grade ores.
↑Established Infrastructure & Expertise
Decades of operational experience and existing infrastructure at key properties like San Dimas reduce the capital and time required for new exploration and production. This deep operational knowledge is hard to replicate.
↑Cost Leadership Potential
The combination of high-grade ore and efficient operations allows First Majestic to achieve lower production costs. This cost advantage provides pricing flexibility and resilience during market downturns.
INVESTMENT RISKS
↓Geopolitical & Country Risk
First Majestic's operations are concentrated in Mexico, exposing them to political instability, changes in mining laws, and potential social unrest. These factors can disrupt operations and impact profitability.
↓Operational & Exploration Risks
Mining is inherently risky, with potential for unexpected geological challenges, equipment failures, and exploration programs not yielding expected results. These can lead to increased costs and reduced output.
↓Labor Relations & Strikes
Maintaining positive labor relations is crucial. Strikes or labor disputes can halt production, leading to significant financial losses and reputational damage.
Base case
AG base case PE valuation
Intrinsic Value
$19.49
Margin of safety
+14.3%
Expected annual return
+3.1%
Base case assumptions: 9.2% annual earnings growth, 23.87x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.
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 AG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for First Majestic Silver Corp. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
24.0x
PEG Ratio
0.01
Earnings Yield
4.18%
ROE (TTM)
12.4%
Revenue/Share (TTM)
$3.30
Dividend Yield
0.27%
Debt/Equity
0.11x
Frequently Asked Questions
What is the PE ratio of AG?
The trailing twelve-month PE ratio of AG reflects how much investors pay per dollar of First Majestic Silver Corp.'s earnings. This metric is most useful when compared to Silver peers and the company's own historical range.
Is AG overvalued based on PE ratio?
AG's PE of 24.0x combined with a PEG ratio of 0.01 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 Silver, a DCF analysis may be more appropriate.
How do I value AG stock using PE ratio?
To value First Majestic Silver Corp. using PE: (1) Compare the current PE (24.0x) against the Silver median to assess relative pricing, (2) check the PEG ratio (0.01) 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 AG?
AG's PEG ratio is 0.01, calculated by dividing the PE ratio (24.0x) 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 AG stock valuation?
PE ratio gives a quick relative read — how AG is priced versus Silver peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 AG 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 AG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.