InPlay Oil (FRA:8DA) Predictability Rank


FRA:8DA InPlay Oil Corp FRA:8DA
56 GF Score
Price €9.28
GF Value €8.18
Valuation Modestly Overvalued
! 10 Warning Signs
View Full Analysis

What is InPlay Oil Predictability Rank?

1 (5)

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.


InPlay Oil Predictability Rank Related Terms

FRA:8DA
56GF Score
InPlay Oil Corp FRA:8DA
Predictability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

InPlay Oil Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Is InPlay Oil (FRA:8DA) Overvalued in 2026?

Based on GuruFocus' analysis, InPlay Oil stock appears to be overvalued. The current stock price of €9.28 is trading 13.4% above its estimated GF Value™ of €8.18. GuruFocus considers InPlay Oil to be Modestly Overvalued.

Key valuation signals for FRA:8DA:

  • Predictability Rank:
  • GF Value™: €8.18 vs. price of €9.28 (13.4% above fair value)
  • GF Score™: 56/100 with 10 warning signs

No single metric tells the full story. See the FRA:8DA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


InPlay Oil Business Description

Industry EnergyOil & Gas
Address 350 - 7th Avenue S.W, Suite 2000, Calgary, AB, CAN, T2P 3N9
InPlay Oil Corp is engaged in the acquisition, exploration, and development of petroleum and natural gas properties, and the production and sale of crude oil, natural gas, and natural gas liquids. Its petroleum and natural gas operations are located in Alberta, Canada. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential, as well as undeveloped lands with exploration possibilities. It generates maximum revenue from the sale of oil, followed by the sale of natural gas and natural gas liquids.
56GF Score

Get the complete analysis for FRA:8DA

Predictability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€9.28
Price
€8.18
GF Value