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PrairieSky Royalty (FRA:7PS) Graham Number : €9.21 (As of Mar. 2024)


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What is PrairieSky Royalty Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-04-26), the stock price of PrairieSky Royalty is €18.00. PrairieSky Royalty's graham number for the quarter that ended in Mar. 2024 was €9.21. Therefore, PrairieSky Royalty's Price to Graham Number ratio for today is 1.95.

The historical rank and industry rank for PrairieSky Royalty's Graham Number or its related term are showing as below:

FRA:7PS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.88   Med: 2.13   Max: 7.87
Current: 1.98

During the past 11 years, the highest Price to Graham Number ratio of PrairieSky Royalty was 7.87. The lowest was 0.88. And the median was 2.13.

FRA:7PS's Price-to-Graham-Number is ranked worse than
84.83% of 646 companies
in the Oil & Gas industry
Industry Median: 0.845 vs FRA:7PS: 1.98

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


PrairieSky Royalty Graham Number Historical Data

The historical data trend for PrairieSky Royalty's Graham Number 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.

PrairieSky Royalty Graham Number Chart

PrairieSky Royalty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.34 3.16 6.97 11.37 9.44

PrairieSky Royalty Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Graham Number 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 11.37 10.15 9.54 9.47 9.21

Competitive Comparison of PrairieSky Royalty's Graham Number

For the Oil & Gas E&P subindustry, PrairieSky Royalty's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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.


PrairieSky Royalty's Price-to-Graham-Number Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, PrairieSky Royalty's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where PrairieSky Royalty's Price-to-Graham-Number falls into.



PrairieSky Royalty Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

PrairieSky Royalty's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*6.107*0.649)
=9.44

PrairieSky Royalty's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.038*0.625)
=9.21

* 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.


PrairieSky Royalty  (FRA:7PS) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

PrairieSky Royalty's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=18.00/9.21
=1.95

* 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.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


PrairieSky Royalty Graham Number Related Terms

Thank you for viewing the detailed overview of PrairieSky Royalty's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


PrairieSky Royalty (FRA:7PS) Business Description

Traded in Other Exchanges
Address
350 - 7th Avenue S.W., Suite 1700, Calgary, AB, CAN, T2P 3N9
PrairieSky Royalty Ltd is the owner of subsurface mineral rights on a variety of royalty properties in western Canada. The company encourages third parties to develop these properties, while also seeking additional petroleum and natural gas royalty assets. Once PrairieSky has given a third party the right to explore, develop, or produce on its properties, the company collects royalty revenue from the development of petroleum and natural gas. Property arrangements can be contracted as lease issuances, farmouts, drilling commitments, or seismic option agreements.

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