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If you are wondering whether Agnico Eagle Mines is still reasonably priced after a strong run, this breakdown is for you. The stock last closed at US$216.59, with returns of 2.2% over 7 days, 9.7% over 30 days, 27.1% year to date, 125.4% over 1 year and a very large 3 year and 5 year gain of roughly 4x and 3x respectively. Recent coverage of Agnico Eagle Mines has focused on its position in the gold sector and how investors are treating it as exposure to the metal, which helps explain the sharp moves in the share price over different periods. These headlines give context to the numbers above, but they do not answer the key question of what the stock might be worth today. On our framework, Agnico Eagle Mines currently has a valuation score of 4 out of 6. This reflects how many of our checks flag the shares as potentially undervalued. We will look at what that means using several common valuation approaches, before finishing with a way to assess value that ties everything together more clearly.

Agnico Eagle Mines delivered 125.4% returns over the last year. See how this stacks up to the rest of the Metals and Mining industry.

Approach 1: Agnico Eagle Mines Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting the cash it could generate in the future and then discounting those cash flows back to today using an appropriate rate.

For Agnico Eagle Mines, the model uses a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in $. The latest twelve month free cash flow is about $4.20b. Analyst estimates are available for the next few years, and from there Simply Wall St extrapolates the trend to build a 10 year path, with projected free cash flow of $7.43b in 2030.

Those yearly projections, such as around $5.93b in 2026 and $6.19b in 2027, are discounted back to their present value and then combined with an estimate for cash flows beyond the explicit forecast period. This results in an estimated intrinsic value of US$283.44 per share, compared with the recent share price of US$216.59, implying the stock screens as about 23.6% undervalued on this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Agnico Eagle Mines is undervalued by 23.6%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks.AEM Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Agnico Eagle Mines.

Story Continues

Approach 2: Agnico Eagle Mines Price vs Earnings

For a profitable company like Agnico Eagle Mines, the P/E ratio is a useful way to think about value because it links what you pay directly to the earnings the business is generating today.

What counts as a reasonable P/E depends on how quickly earnings are expected to grow and how risky those earnings are. Higher growth or lower perceived risk can justify a higher multiple, while slower growth or higher uncertainty usually point to a lower one.

Agnico Eagle Mines currently trades on a P/E of 24.29x. That sits slightly below the Metals and Mining industry average of 25.28x and below the peer group average of 32.30x. Simply Wall St also calculates a proprietary “Fair Ratio” for the stock of 24.05x, which is the P/E level it might trade on given factors like earnings profile, industry, profit margins, market cap and company specific risks.

This Fair Ratio is more tailored than a plain comparison with peers or the industry, because it tries to adjust for those differences rather than assuming all companies deserve the same multiple. With the current P/E of 24.29x sitting very close to the Fair Ratio of 24.05x, the shares screen as roughly in line with that metric.

Result: ABOUT RIGHTNYSE:AEM P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Agnico Eagle Mines Narrative

Earlier we mentioned that there is an even better way to think about valuation. On Simply Wall St that comes through Narratives, where you set out your story for Agnico Eagle Mines, link it to your own forecasts for revenue, earnings and margins, and end up with a Fair Value that you can compare to the current price. All this happens within an accessible tool on the Community page that updates as news or earnings arrive. In this way, one investor might lean toward a higher fair value of about US$221.67 based on stronger growth and margins, while another leans closer to roughly US$110.25 using more cautious assumptions, and both can clearly see how their view flows from story to forecast to valuation.

For Agnico Eagle Mines, however, we will make it really easy for you with previews of two leading Agnico Eagle Mines Narratives:

Both are built from the same underlying data, but they reach very different conclusions about what the stock could be worth and why. Your job is not to pick which author is right, but to decide which set of assumptions feels closer to how you see the world.

🐂 Agnico Eagle Mines Bull Case

Fair value in this bullish narrative: US$221.67 per share

Gap to that fair value at the last close of US$216.59: about 2.3% below the narrative fair value

Revenue growth used in this narrative: 12.38% a year

Focuses on higher gold prices, reserve expansion around key assets and a long pipeline of projects that are expected to support revenue and earnings growth over time. Highlights efficiency programs, technology upgrades and a focus on lower risk jurisdictions as reasons profit margins could stay healthy. Relies on analysts expecting stronger earnings by 2028 and a P/E of 26.1x, with a consensus price target close to the current market level, which they view as broadly fair based on those assumptions.

🐻 Agnico Eagle Mines Bear Case

Fair value in this more cautious narrative: US$110.25 per share

Gap to that fair value at the last close of US$216.59: about 96.3% above the narrative fair value

Revenue growth used in this narrative: 10.13% a year

Questions how much of the current share price depends on elevated gold price assumptions and whether investor attention could continue shifting toward other commodities over time. Flags the scale and location of key projects as sources of potential cost inflation, permitting risk and operational disruption, which could pressure margins and cash flows if anything goes off plan. Adopts a lower future P/E multiple of 15.21x, even with higher revenue and margin assumptions than before, which keeps the fair value estimate well below the current share price.

If you want to go beyond the quick comparison and see how each author connects their story to detailed numbers for revenue, earnings, margins and risk, you can step through both Narratives in full and stress test them against your own view of gold, project execution and valuation.

Curious how numbers become stories that shape markets? Explore Community Narratives

Do you think there's more to the story for Agnico Eagle Mines? Head over to our Community to see what others are saying!NYSE:AEM 1-Year Stock Price Chart

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.

Companies discussed in this article include AEM.

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