Franco-Nevada: Missing Out On Gold Upside, But Also Volatility

Franco-Nevada (FNV) remains a fundamentally strong, asset-light gold royalty business with no debt and high margins, but valuation is currently unattractive. Despite gold's surge and FNV's 90%+ EBITDA margins, the stock underperformed physical gold and broader indices due to high P/E and investor preference for higher-beta miners. FNV's diversified exposure, including oil and gas, and its premium multiple limit upside; annualized RoR since 2020 is under 8%.