Freehold Royalties Valuation

Is FRU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRU (CA$14.22) is trading below our estimate of fair value (CA$33.02)

Significantly Below Fair Value: FRU is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for FRU?

Other financial metrics that can be useful for relative valuation.

FRU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.3x
Enterprise Value/EBITDA8.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does FRU's PE Ratio compare to its peers?

The above table shows the PE ratio for FRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
NVA NuVista Energy
6.8x45.1%CA$2.3b
IPCO International Petroleum
8.8x-3.1%CA$2.1b
ATH Athabasca Oil
34.3x18.9%CA$2.8b
TVE Tamarack Valley Energy
17.8xn/aCA$2.3b
FRU Freehold Royalties
14.3xn/aCA$2.1b

Price-To-Earnings vs Peers: FRU is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does FRU's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FRU is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the Canadian Oil and Gas industry average (11.8x).


Price to Earnings Ratio vs Fair Ratio

What is FRU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FRU's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FRU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$14.22
CA$17.57
+23.6%
7.9%CA$21.00CA$15.00n/a14
Oct ’25CA$14.29
CA$17.57
+23.0%
7.9%CA$21.00CA$15.00n/a14
Sep ’25CA$13.75
CA$17.68
+28.6%
7.7%CA$21.00CA$15.00n/a14
Aug ’25CA$13.70
CA$17.68
+29.0%
7.7%CA$21.00CA$15.00n/a14
Jul ’25CA$13.62
CA$17.93
+31.6%
7.4%CA$21.00CA$15.00n/a14
Jun ’25CA$14.47
CA$17.93
+23.9%
7.4%CA$21.00CA$15.00n/a14
May ’25CA$13.96
CA$17.89
+28.2%
7.5%CA$21.00CA$15.00n/a14
Apr ’25CA$14.61
CA$17.88
+22.3%
7.8%CA$21.00CA$15.00n/a14
Mar ’25CA$13.84
CA$18.25
+31.9%
6.2%CA$20.00CA$16.00n/a13
Feb ’25CA$13.78
CA$18.30
+32.8%
6.2%CA$20.00CA$16.00n/a14
Jan ’25CA$13.69
CA$19.05
+39.2%
5.4%CA$20.50CA$16.75n/a14
Dec ’24CA$13.96
CA$19.08
+36.7%
7.2%CA$20.50CA$15.50n/a15
Nov ’24CA$14.49
CA$19.12
+31.9%
6.7%CA$20.50CA$16.00n/a15
Oct ’24CA$14.70
CA$18.92
+28.7%
6.8%CA$20.00CA$16.00CA$14.2915
Sep ’24CA$14.64
CA$18.85
+28.8%
6.6%CA$20.00CA$16.00CA$13.7515
Aug ’24CA$14.05
CA$19.05
+35.6%
9.2%CA$24.00CA$16.00CA$13.7015
Jul ’24CA$13.44
CA$19.38
+44.2%
6.2%CA$21.00CA$17.00CA$13.6215
Jun ’24CA$13.92
CA$19.64
+41.1%
8.3%CA$24.00CA$17.00CA$14.4716
May ’24CA$14.67
CA$19.77
+34.7%
8.6%CA$24.00CA$17.00CA$13.9616
Apr ’24CA$14.53
CA$20.30
+39.7%
7.7%CA$24.00CA$17.00CA$14.6116
Mar ’24CA$15.70
CA$20.41
+30.0%
9.8%CA$27.00CA$18.00CA$13.8416
Feb ’24CA$15.50
CA$20.47
+32.1%
9.7%CA$27.00CA$18.00CA$13.7816
Jan ’24CA$15.83
CA$20.59
+30.1%
9.3%CA$27.00CA$18.00CA$13.6916
Dec ’23CA$16.62
CA$20.66
+24.3%
9.2%CA$27.00CA$18.00CA$13.9616
Nov ’23CA$16.96
CA$20.09
+18.5%
11.0%CA$27.00CA$16.50CA$14.4916
Oct ’23CA$14.38
CA$20.22
+40.6%
11.5%CA$27.00CA$16.50CA$14.7016

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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