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

: $28.70 (As of Sep. 2023)

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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 Sep. 2023 was $35.245. 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 $28.70 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Franco-Nevada's average Cyclically Adjusted Book Growth Rate was 9.20% per year. During the past 3 years, the average Cyclically Adjusted Book Growth Rate was 9.10% per year. During the past 5 years, the average Cyclically Adjusted Book Growth Rate was 8.20% 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 9.10% per year. The lowest was 7.10% per year. And the median was 7.80% per year.

As of today (2023-12-11), Franco-Nevada's current stock price is $108.49. Franco-Nevada's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2023 was $28.70. Franco-Nevada's Cyclically Adjusted PB Ratio of today is 3.78.

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 4.94.

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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cyclically Adjusted Book per Share

19.09

21.52

23.28

25.76

26.82

Franco-Nevada Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Cyclically Adjusted Book per Share																25.86	26.82	27.57	28.84	28.70

Competitive Comparison

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 Cyclically Adjusted PB Ratio Distribution

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

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 Sep. 2023 was:

Adj_Book	=	Book Value per Share	/	CPI of Sep. 2023 (Change)	*	Current CPI (Sep. 2023)
	=	35.245	/	125.2304	*	125.2304
	=	35.245

Current CPI (Sep. 2023) = 125.2304.

Franco-Nevada Quarterly Data

	Book Value per Share	CPI	Adj_Book
201312	20.139	96.945	26.015
201403	20.183	98.604	25.633
201406	20.578	99.473	25.906
201409	22.202	99.394	27.973
201412	21.763	98.367	27.706
201503	21.131	99.789	26.518
201506	21.186	100.500	26.399
201509	20.671	100.421	25.778
201512	17.842	99.947	22.355
201603	23.257	101.054	28.821
201606	23.346	102.002	28.663
201609	23.502	101.765	28.921
201612	23.232	101.449	28.678
201703	23.372	102.634	28.518
201706	24.659	103.029	29.973
201709	25.111	103.345	30.429
201712	25.308	103.345	30.668
201803	25.194	105.004	30.047
201806	25.246	105.557	29.951
201809	25.461	105.636	30.184
201812	24.810	105.399	29.478
201903	25.257	106.979	29.566
201906	25.615	107.690	29.787
201909	26.013	107.611	30.272
201912	26.730	107.769	31.061
202003	25.673	107.927	29.789
202006	26.604	108.401	30.734
202009	27.409	108.164	31.734
202012	28.508	108.559	32.886
202103	29.332	110.298	33.303
202106	30.347	111.720	34.017
202109	30.489	112.905	33.817
202112	31.490	113.774	34.661
202203	32.409	117.646	34.498
202206	32.506	120.806	33.697
202209	32.616	120.648	33.855
202212	33.444	120.964	34.624
202303	33.995	122.702	34.695
202306	34.779	124.203	35.067
202309	35.245	125.230	35.245

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

Franco-Nevada (NYSE: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
	=	108.49	/	28.7
	=	3.78

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 4.94.

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 (NYSE:FNV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Franco-Nevada Corp (NYSE:FNV) » Definitions » Cyclically Adjusted Book per Share

Comparable Companies

Traded in Other Exchanges

FNV:Mexico 3FO:Germany 3FO:Germany FNV:Canada F2NV34:Brazil

Address

199 Bay Street, Suite 2000, P.O. Box 285, Commerce Court Postal Station, Toronto, ON, CAN, M5L 1G9

Website

https://www.franco-nevada.com

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.