Up 188% in 2025! This is still one of the FTSE 100’s greatest value shares to consider
The FTSE 100 has risen a healthy 10% in 2025, yet the UK’s leading index of shares remains packed with top bargains for investors to consider.
Here’s one I think’s worth particularly serious attention as nervousness among investors increases. It’s risen 188% in the year to date, and could continue rising even if the broader Footsie falls back.
The company’s cheap valuation provides scope for further share price gains too. Let’s take a look.
The background
Gold’s surge to fresh record highs has grabbed most of the commodity headlines this week. What’s gained less attention is silver, which — having broken above $40 per ounce — has reached levels not seen since 2014. Its 40%+ rise over the last year has also been no mean feat.
The grey metal has risen on the same concerns that have propelled its more expensive cousin to new peaks. Rising inflation, hopes of imminent Federal Reserve rate cuts, and questions over the US central bank’s independence have powered silver prices.
Yet on an historical level, silver still looks cheap compared to gold. Today the gold:silver ratio is just over 86 times, which remains high and could leave scope for price outperformance.
Seizing the opportunity
In this climate, holding shares in miners that produce gold and silver rather than just pureplay gold stocks, could be worth thinking about. One such company from the FTSE 100 I think is worth a close look is Fresnillo (LSE:FRES).
Its share price rise over the past year has been incredible, as you can see below.
Mining for industrial metals is a famously perilous business. Problems at all stages of the mining process can be commonplace, from disappointment at the resource testing phase to power outages that stop production rolling. But the returns can also be considerable, as — thanks to these companies’ relatively fixed costs — their profits can soar when prices of the underlying commodity they produce rise.
I also like the idea of Fresnillo shares as it has the scale to maximise profits during bull markets. It’s the largest silver miner on the planet, and produced 56.3m ounces of the investment and industrial metal in 2024. It also produces more gold than any other Mexican business.
Finally, with around a dozen working mines and advanced exploration projects, Fresnillo is well placed to grow profits even if one or two of its assets endure operational issues.
Too cheap?
City analysts expect Fresnillo’s annual earnings to rocket 240% in 2025. This leaves the miner trading on a forward price-to-earnings (P/E) multiple of 20.9 times, which may not appear outstanding value.
However, the company’s price-to-earnings growth (PEG) ratio of just 0.1 in fact suggests excellent value relative to expected profits. Any sub-1 reading is said to represent exceptional value.
Fresnillo’s a share I think could deliver strong and sustained profits growth, driven by a promising outlook for precious metals and its string of exciting growth projects. I believe it’s a top stock for value investors to consider.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
