Franco-Nevada Corporation

LSE:0QYZ Stock Report

Market Cap: CA$30.9b

Franco-Nevada Valuation

Is 0QYZ 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 0QYZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0QYZ (CA$165.77) is trading above our estimate of fair value (CA$162.48)

Significantly Below Fair Value: 0QYZ is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0QYZ?

Key metric: As 0QYZ is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0QYZ. This is calculated by dividing 0QYZ's market cap by their current revenue.
What is 0QYZ's PS Ratio?
PS Ratio20.9x
SalesUS$1.09b
Market CapUS$21.93b

Price to Sales Ratio vs Peers

How does 0QYZ's PS Ratio compare to its peers?

The above table shows the PS ratio for 0QYZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
CEY Centamin
2.3x6.3%UK£1.7b
HOC Hochschild Mining
1.9x9.5%UK£1.2b
PAF Pan African Resources
2.3x9.6%UK£676.5m
ANTO Antofagasta
3.3x8.8%UK£16.5b
0QYZ Franco-Nevada
20.9x16.9%CA$30.9b

Price-To-Sales vs Peers: 0QYZ is expensive based on its Price-To-Sales Ratio (20.9x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does 0QYZ's PS Ratio compare vs other companies in the GB Metals and Mining Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
GLEN Glencore
0.3x-0.8%US$58.48b
NLMK Novolipetsk Steel
0.3xn/aUS$4.08b
EVR EVRAZ
0.1x-8.5%US$1.42b
PDL Petra Diamonds
0.2x8.6%US$88.14m
0QYZ 20.9xIndustry Avg. 2.0xNo. of Companies14PS01.22.43.64.86+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0QYZ is expensive based on its Price-To-Sales Ratio (20.9x) compared to the UK Metals and Mining industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is 0QYZ'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.

0QYZ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio20.9x
Fair PS Ratio15.7x

Price-To-Sales vs Fair Ratio: 0QYZ is expensive based on its Price-To-Sales Ratio (20.9x) compared to the estimated Fair Price-To-Sales Ratio (15.7x).

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 0QYZ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$165.77
CA$207.47
+25.2%
7.3%CA$238.65CA$190.17n/a8
Nov ’25CA$185.69
CA$206.55
+11.2%
12.0%CA$265.74CA$176.81n/a8
Oct ’25n/a
CA$200.21
0%
12.6%CA$263.44CA$175.77n/a8
Sep ’25CA$165.00
CA$200.00
+21.2%
13.3%CA$265.12CA$168.33n/a8
Aug ’25CA$174.16
CA$206.25
+18.4%
11.4%CA$265.59CA$174.53n/a9
Jul ’25CA$163.22
CA$200.01
+22.5%
9.7%CA$249.86CA$173.71n/a10
Jun ’25CA$170.11
CA$197.72
+16.2%
9.9%CA$248.64CA$172.27n/a10
May ’25CA$166.59
CA$196.06
+17.7%
10.2%CA$249.33CA$172.24n/a10
Apr ’25CA$160.25
CA$187.77
+17.2%
13.4%CA$248.92CA$149.87n/a10
Mar ’25CA$142.78
CA$197.03
+38.0%
12.6%CA$251.55CA$163.06n/a9
Feb ’25CA$148.18
CA$191.00
+28.9%
13.4%CA$247.57CA$157.11n/a10
Jan ’25CA$146.29
CA$197.49
+35.0%
16.3%CA$248.56CA$146.53n/a9
Dec ’24CA$151.60
CA$206.13
+36.0%
15.0%CA$247.54CA$149.15n/a9
Nov ’24CA$165.13
CA$225.76
+36.7%
8.8%CA$258.59CA$194.96CA$185.699
Oct ’24CA$178.30
CA$226.48
+27.0%
8.5%CA$259.05CA$199.77n/a9
Sep ’24CA$195.42
CA$225.90
+15.6%
8.3%CA$258.71CA$198.77CA$165.009
Aug ’24CA$194.13
CA$232.29
+19.7%
7.2%CA$260.45CA$206.69CA$174.168
Jul ’24CA$186.10
CA$219.54
+18.0%
13.2%CA$246.85CA$147.05CA$163.2210
Jun ’24CA$197.25
CA$220.83
+12.0%
12.5%CA$247.77CA$149.82CA$170.1111
May ’24CA$209.23
CA$217.48
+3.9%
12.2%CA$251.55CA$150.37CA$166.5911
Apr ’24CA$197.95
CA$208.85
+5.5%
12.3%CA$239.84CA$150.59CA$160.2510
Mar ’24CA$172.06
CA$210.26
+22.2%
12.0%CA$239.88CA$150.68CA$142.7810
Feb ’24CA$194.29
CA$207.09
+6.6%
11.7%CA$239.41CA$147.50CA$148.1810
Jan ’24CA$184.29
CA$208.35
+13.1%
11.9%CA$244.46CA$150.87CA$146.2910
Dec ’23CA$198.39
CA$207.51
+4.6%
12.5%CA$248.00CA$149.89CA$151.6010
Nov ’23CA$169.40
CA$204.19
+20.5%
11.7%CA$227.14CA$151.25CA$165.1310

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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