Is First Majestic Silver (TSX:AG) Undervalued After Strong Q2 Earnings And A Lower Dividend?
First Majestic Silver (TSX:AG) is back in focus after releasing second quarter 2026 results, a lower cash dividend, a completed share buyback tranche, and a recent pullback in the share price.
See our latest analysis for First Majestic Silver.
The recent pullback, including a 30 day share price return that is down 9.79% and a 90 day share price return that is down 19.57%, contrasts with First Majestic Silver’s 1 year total shareholder return of 101.99% and 3 year total shareholder return of 191%. This suggests strong longer term momentum even as investors reassess the stock after the second quarter earnings, reduced dividend and completed buyback.
If this mix of volatility and long term gains has your attention, it may be a good time to see what is happening across other precious metals producers through the 9 top silver producer stocks
After a sharp run over the past year and a recent pullback, First Majestic Silver now sits between strong trailing returns and a more cautious reaction to its lower dividend and completed buyback. How much upside is left in the current valuation setup?
Most Popular Narrative: 33.2% Undervalued
Based on the most followed valuation narrative, First Majestic Silver’s fair value of CA$34.75 sits well above the recent close at CA$23.22. This helps explain why some investors still see room in the story despite the recent pullback.
Robust year over year growth in silver production and record revenue, combined with expanded exploration and accelerated mine development, position the company to capture higher sales volumes and benefit from potential increases in industrial and investment demand for silver, directly supporting future revenue growth.
Want to see what is baked into that CA$34.75 fair value for First Majestic Silver? The core of the narrative is rising earnings, higher margins and a richer future earnings multiple. Curious which assumptions really move that valuation?
Result: Fair Value of CA$34.75 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the First Majestic Silver narrative still hinges on managing rising operating and capital costs, as well as on concentrated exposure to Mexico that can amplify local shocks.
Find out about the key risks to this First Majestic Silver narrative.
Another View On First Majestic Silver’s Valuation
The analyst narrative and SWS model point to First Majestic Silver trading below a CA$34.75 fair value. Yet on a simple P/E basis, the picture is less clear. AG trades on 23.4x earnings, above the Canadian metals and mining industry at 14.3x and above its own fair ratio of 18.5x. That gap suggests investors are paying up compared to the sector even though the stock screens as undervalued against its fair value estimate. Which signal matters more for you?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With mixed signals across First Majestic Silver’s valuation and recent share price moves, sentiment is clearly divided. If you want to move fast and form your own view, start by checking the 4 key rewards
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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