Franco-Nevada Corporation

TSX:FNV Stock Report

Market Cap: CA$30.9b

Franco-Nevada Valuation

Is FNV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FNV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FNV (CA$166.01) is trading above our estimate of fair value (CA$161.99)

Significantly Below Fair Value: FNV is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FNV?

Key metric: As FNV is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FNV. This is calculated by dividing FNV's market cap by their current revenue.
What is FNV's PS Ratio?
PS Ratio20.9x
SalesUS$1.09b
Market CapUS$21.93b

Price to Sales Ratio vs Peers

How does FNV's PS Ratio compare to its peers?

The above table shows the PS ratio for FNV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.4x
WPM Wheaton Precious Metals
22.6x11.3%CA$37.5b
ABX Barrick Gold
2.4x7.7%CA$41.0b
K Kinross Gold
2.5x-1.7%CA$16.8b
AGI Alamos Gold
6.3x14.6%CA$10.4b
FNV Franco-Nevada
20.9x16.9%CA$30.9b

Price-To-Sales vs Peers: FNV is expensive based on its Price-To-Sales Ratio (20.9x) compared to the peer average (8.4x).

Price to Sales Ratio vs Industry

How does FNV's PS Ratio compare vs other companies in the CA Metals and Mining Industry?

83 CompaniesPrice / SalesEstimated GrowthMarket Cap
TECK.B Teck Resources
2x-10.3%US$23.06b
LUN Lundin Mining
1.9x5.0%US$7.71b
BTO B2Gold
1.9x8.7%US$3.66b
HBM Hudbay Minerals
1.7x5.0%US$3.36b
FNV 20.9xIndustry Avg. 2.9xNo. of Companies83PS0816243240+
83 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FNV is expensive based on its Price-To-Sales Ratio (20.9x) compared to the Canadian Metals and Mining industry average (2.8x).

Price to Sales Ratio vs Fair Ratio

What is FNV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FNV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.9x
Fair PS Ratio18x

Price-To-Sales vs Fair Ratio: FNV is expensive based on its Price-To-Sales Ratio (20.9x) compared to the estimated Fair Price-To-Sales Ratio (18x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FNV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$166.01
CA$207.47
+25.0%
7.3%CA$238.65CA$190.17n/a8
Nov ’25CA$183.87
CA$206.55
+12.3%
12.0%CA$265.74CA$176.81n/a8
Oct ’25CA$168.80
CA$200.21
+18.6%
12.6%CA$263.44CA$175.77n/a8
Sep ’25CA$164.56
CA$200.00
+21.5%
13.3%CA$265.12CA$168.33n/a8
Aug ’25CA$176.28
CA$206.25
+17.0%
11.4%CA$265.59CA$174.53n/a9
Jul ’25CA$162.20
CA$200.01
+23.3%
9.7%CA$249.86CA$173.71n/a10
Jun ’25CA$167.69
CA$197.72
+17.9%
9.9%CA$248.64CA$172.27n/a10
May ’25CA$167.59
CA$196.06
+17.0%
10.2%CA$249.33CA$172.24n/a10
Apr ’25CA$164.29
CA$187.77
+14.3%
13.4%CA$248.92CA$149.87n/a10
Mar ’25CA$145.11
CA$197.03
+35.8%
12.6%CA$251.55CA$163.06n/a9
Feb ’25CA$148.29
CA$191.00
+28.8%
13.4%CA$247.57CA$157.11n/a10
Jan ’25CA$146.77
CA$197.49
+34.6%
16.3%CA$248.56CA$146.53n/a9
Dec ’24CA$152.71
CA$206.13
+35.0%
15.0%CA$247.54CA$149.15n/a9
Nov ’24CA$165.81
CA$225.76
+36.2%
8.8%CA$258.59CA$194.96CA$183.879
Oct ’24CA$181.33
CA$226.48
+24.9%
8.5%CA$259.05CA$199.77CA$168.809
Sep ’24CA$195.21
CA$225.90
+15.7%
8.3%CA$258.71CA$198.77CA$164.569
Aug ’24CA$189.75
CA$232.29
+22.4%
7.2%CA$260.45CA$206.69CA$176.288
Jul ’24CA$188.81
CA$219.54
+16.3%
13.2%CA$246.85CA$147.05CA$162.2010
Jun ’24CA$201.26
CA$220.83
+9.7%
12.5%CA$247.77CA$149.82CA$167.6911
May ’24CA$208.86
CA$217.48
+4.1%
12.2%CA$251.55CA$150.37CA$167.5911
Apr ’24CA$197.13
CA$208.85
+5.9%
12.3%CA$239.84CA$150.59CA$164.2910
Mar ’24CA$181.94
CA$210.26
+15.6%
12.0%CA$239.88CA$150.68CA$145.1110
Feb ’24CA$197.79
CA$207.09
+4.7%
11.7%CA$239.41CA$147.50CA$148.2910
Jan ’24CA$184.57
CA$208.35
+12.9%
11.9%CA$244.46CA$150.87CA$146.7710
Dec ’23CA$197.77
CA$207.51
+4.9%
12.5%CA$248.00CA$149.89CA$152.7110
Nov ’23CA$171.01
CA$204.19
+19.4%
11.7%CA$227.14CA$151.25CA$165.8110

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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