Franco-Nevada (FRA:3FO) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:3FO Franco-Nevada Corp FRA:3FO
90 GF Score
Price €177.40
GF Value €231.73
Valuation Modestly Undervalued
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What is Franco-Nevada Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Franco-Nevada is: Low Risk: Strong fundamentals, worth long-term holding.

Franco-Nevada  (FRA:3FO) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Franco-Nevada Risk Assessment Related Terms

FRA:3FO vs NEM, AU, RGLD: Risk Assessment Comparison

For the Gold subindustry, Franco-Nevada's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Franco-Nevada Risk Assessment vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Franco-Nevada's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Franco-Nevada's Risk Assessment falls into.


FRA:3FO
90GF Score
Franco-Nevada Corp FRA:3FO
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Franco-Nevada (FRA:3FO) Overvalued in 2026?

Based on GuruFocus' analysis, Franco-Nevada stock appears to be undervalued. The current stock price of €177.40 is trading 23.4% below its estimated GF Value™ of €231.73. GuruFocus considers Franco-Nevada to be Modestly Undervalued.

Key valuation signals for FRA:3FO:

  • Risk Assessment:
  • GF Value™: €231.73 vs. price of €177.40 (23.4% below fair value)
  • GF Score™: 90/100

No single metric tells the full story. See the FRA:3FO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Franco-Nevada Business Description

Address 199 Bay Street, Suite 2000, Commerce Court West, Toronto, ON, CAN, M5L 1G9
Franco-Nevada Corp is a precious-metals-focused royalty and investment company. The company owns a diversified portfolio of precious metals and royalty streams, which is actively managed to generate the bulk of its revenue from gold, silver, and platinum. The company does not operate mines, develop projects, or conduct exploration. The company's short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of producing assets. Its long-term performance is affected by the availability of exploration and development capital. The company holds a portfolio of assets, diversified by commodity, revenue type, and stage of a project.
90GF Score

Get the complete analysis for FRA:3FO

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€177.40
Price
€231.73
GF Value