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Franco-Nevada (TSX:FNV) Cyclically Adjusted Book per Share : C$39.38 (As of Dec. 2023)


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What is Franco-Nevada Cyclically Adjusted Book per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Franco-Nevada's adjusted book value per share for the three months ended in Dec. 2023 was C$40.275. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is C$39.38 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Franco-Nevada's average Cyclically Adjusted Book Growth Rate was 8.60% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 9.90% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 8.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Franco-Nevada was 9.90% per year. The lowest was 7.10% per year. And the median was 8.45% per year.

As of today (2024-04-30), Franco-Nevada's current stock price is C$168.58. Franco-Nevada's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was C$39.38. Franco-Nevada's Cyclically Adjusted PB Ratio of today is 4.28.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Franco-Nevada was 7.49. The lowest was 3.15. And the median was 4.83.


Franco-Nevada Cyclically Adjusted Book per Share Historical Data

The historical data trend for Franco-Nevada's Cyclically Adjusted Book per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Franco-Nevada Cyclically Adjusted Book per Share Chart

Franco-Nevada Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Book per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.93 29.64 32.59 36.27 39.38

Franco-Nevada Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Book per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.27 37.27 38.19 38.99 39.38

Competitive Comparison of Franco-Nevada's Cyclically Adjusted Book per Share

For the Gold subindustry, Franco-Nevada's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Franco-Nevada's Cyclically Adjusted PB Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Franco-Nevada's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Franco-Nevada's Cyclically Adjusted PB Ratio falls into.



Franco-Nevada Cyclically Adjusted Book per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Franco-Nevada's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book= Book Value per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=40.275/125.4675*125.4675
=40.275

Current CPI (Dec. 2023) = 125.4675.

Franco-Nevada Quarterly Data

Book Value per Share CPI Adj_Book
201403 22.417 98.604 28.524
201406 22.286 99.473 28.110
201409 24.447 99.394 30.860
201412 25.097 98.367 32.011
201503 26.663 99.789 33.524
201506 26.196 100.500 32.704
201509 27.423 100.421 34.263
201512 24.466 99.947 30.713
201603 30.760 101.054 38.191
201606 30.102 102.002 37.027
201609 30.807 101.765 37.983
201612 30.989 101.449 38.326
201703 31.288 102.634 38.249
201706 32.784 103.029 39.924
201709 30.834 103.345 37.435
201712 32.316 103.345 39.234
201803 32.583 105.004 38.933
201806 33.135 105.557 39.385
201809 33.185 105.636 39.415
201812 33.335 105.399 39.682
201903 33.771 106.979 39.607
201906 34.039 107.690 39.658
201909 34.444 107.611 40.159
201912 35.201 107.769 40.982
202003 35.839 107.927 41.664
202006 36.054 108.401 41.730
202009 36.262 108.164 42.063
202012 36.516 108.559 42.203
202103 36.867 110.298 41.938
202106 37.084 111.720 41.647
202109 38.632 112.905 42.930
202112 40.308 113.774 44.451
202203 41.030 117.646 43.758
202206 41.621 120.806 43.227
202209 43.507 120.648 45.245
202212 45.433 120.964 47.125
202303 46.515 122.702 47.563
202306 46.207 124.203 46.677
202309 47.690 125.230 47.780
202312 40.275 125.468 40.275

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.


Franco-Nevada  (TSX:FNV) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Franco-Nevada's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio=Share Price/Cyclically Adjusted Book per Share
=168.58/39.38
=4.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Franco-Nevada was 7.49. The lowest was 3.15. And the median was 4.83.


Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.


Franco-Nevada Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Franco-Nevada's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Franco-Nevada (TSX:FNV) Business Description

Industry
Address
199 Bay Street, Suite 2000, P.O. Box 285, Commerce Court Postal Station, Toronto, ON, CAN, M5L 1G9
Franco-Nevada Corp is a precious-metals-focused royalty and investment company. The company owns a diversified portfolio of precious metals and royalty streams, which is actively managed to generate the bulk of its revenue from gold, silver, and platinum. The company does not operate mines, develop projects, or conduct exploration. Franco-Nevada's short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of producing assets. Its long-term performance is affected by the availability of exploration and development capital. The company holds a portfolio of assets, diversified by commodity, revenue type, and stage of a project, primarily located in the United States, Canada, and Australia.
Executives
Sandip Rana Senior Officer

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