Freehold Royalties Ltd. (FRU.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-9.8%

CA$15.36

vs CA$17.03 price

Levered DCF

CA$16.27

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.36

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.12×	12.92×	15.56×	11.39×	21.98×	-43.42×	166.44×	68.92×
P/B	2.49×	1.76×	2.23×	2.48×	1.78×	0.94×	1.22×	1.26×
P/S	7.95×	6.26×	6.56×	6.07×	7.71×	6.87×	6.13×	6.73×
EV / EBITDA	11.08×	7.26×	7.83×	7.06×	9.32×	10.84×	9.05×	8.52×
Gross margin	62.9%	64.3%	97.0%	71.7%	57.3%	11.7%	32.6%	29.3%
Operating margin	53.1%	57.7%	90.9%	65.5%	47.8%	-4.9%	19.0%	15.8%
Net margin	29.3%	48.3%	41.9%	53.2%	35.0%	-15.5%	3.7%	9.7%
Current ratio	1.41×	1.54×	2.12×	1.56×	3.43×	1.4×	2.23×	1.05×
Debt / equity	0.29×	0.27×	0.13×	0.16×	0.17×	0.14×	0.16×	0.12×
Interest coverage	9.06×	11.57×	27.82×	42.09×	29.14×	-1.36×	6.3×	6.18×
Dividend yield	7.1%	8.4%	7.9%	5.9%	3.9%	6.3%	8.6%	7.5%
Payout ratio	192.9%	108.9%	123.4%	67.7%	86.0%	-281.1%	1437.8%	525.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.2%	13.6%	14.3%	21.8%	8.1%	-2.1%	0.7%	1.8%
Return on invested capital	9.3%	9.6%	20.0%	17.3%	7.1%	-0.5%	2.0%	1.9%
Return on assets	6.7%	10.1%	11.8%	17.3%	6.7%	-1.7%	0.6%	1.6%
Free cash flow yield	7.7%	-9.7%	10.0%	5.7%	-13.5%	10.0%	12.2%	13.2%
Earnings yield	3.7%	7.7%	6.4%	8.8%	4.5%	-2.3%	0.6%	1.4%
Enterprise value	CA$2.8B	CA$2.2B	CA$2.2B	CA$2.5B	CA$1.7B	CA$712.2M	CA$973.5M	CA$1.1B
Net debt / EBITDA	1.14×	0.98×	0.45×	0.44×	0.78×	1.43×	1.02×	0.71×
Cash conversion cycle (days)	44	39	-129	40	61	132	50	16