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    First Majestic Silver (TSX:AG) Could Be 19% Below Fair Value After Drill Results

    Simply Wall St·09/19/2026 16:20:27
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    First Majestic Silver (TSX:AG) is back in focus after reporting positive drill results from its 2026 exploration program at the San Dimas Silver/Gold Mine in Durango, Mexico, including multiple high-grade silver and gold intercepts.

    First Majestic Silver has ridden a strong run over the past year, with a 1-year total shareholder return of 92.49% and a year-to-date share price return of 27.79%. The 3-year total shareholder return of about 3x signals powerful long-term momentum, even though the 30-day share price return declined 2.08%.

    Capitalize on First Majestic Silver's drilling momentum by scanning a curated group of precious metals producers through the 10 top silver producer stocks as potential peers for further research.

    First Majestic Silver now combines fresh drilling success with a share price that has already run hard. The next step is simple: Do the current fundamentals justify paying CA$28.19 today?

    Most Popular Narrative: 19% Undervalued

    The most followed narrative puts First Majestic Silver's fair value at CA$34.75, above the last close of CA$28.19. This frames the current share price as a discount that investors need to judge against the underlying assumptions.

    Substantial ongoing investment in exploration (e.g., 255,000 meters drilled, addition of drilling rigs, and development of large new ore bodies like Navidad and Santo Niño) is expected to extend reserve life, increase production capacity, and drive long-term revenue and cash flow growth.

    See why 44 investors see First Majestic Silver as 19% undervalued.

    Result: Fair Value of CA$34.75 (UNDERVALUED)

    Still, the bullish First Majestic Silver narrative could crack if high operating and capital spending squeeze margins, or if Mexico-focused operations face regulatory or labour shocks.

    Find out about the key risks to this First Majestic Silver narrative.

    Another View On First Majestic Silver's Valuation

    Fair value models tell one story for First Majestic Silver, but the market ratio picture is more complicated. The shares trade on a P/E of 28.6x, while the fair ratio sits at 19.5x. That is rich compared with the Canadian Metals and Mining average of 17x and suggests investors are already paying up for the story.

    Peers on average carry a higher 49.1x P/E, which shows how wide the spread is between industry norms, peer enthusiasm and the fair ratio the market could move towards over time. The question is simple: how comfortable are you if sentiment cools and that gap closes from above rather than below?

    See what the numbers say about this price — find out in our valuation breakdown.

    TSX:AG P/E Ratio as at Sep 2026
    TSX:AG P/E Ratio as at Sep 2026

    Next Steps

    Mixed message or clear opportunity for First Majestic Silver? If both the potential upside and the warning flags matter to you, weigh the evidence yourself through 4 key rewards and 1 important warning sign

    Looking for more investment ideas beyond First Majestic Silver?

    If First Majestic Silver has sharpened your focus, consider broadening your watchlist now to avoid missing other quality setups that could fit your style.

    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.