PrairieSky Royalty Ltd. (PSK.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

+13.8%

CA$40.88

vs CA$35.92 price

Levered DCF

CA$44.17

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

10.59

Safe zone

Rating

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	31.07×	31.14×	24.42×	16.32×	24.78×	72.07×	31.73×	51.97×
P/B	2.47×	2.44×	2×	1.87×	1.17×	0.99×	1.43×	1.61×
P/S	13.15×	14.24×	11.56×	8.37×	10.37×	14.51×	14.28×	16.66×
EV / EBITDA	15.09×	15.45×	12.59×	9.31×	13.94×	16.42×	15.25×	17.08×
Gross margin	67.6%	99.2%	98.7%	98.9%	98.8%	98.4%	98.2%	98.0%
Operating margin	59.1%	89.2%	89.3%	91.1%	87.9%	86.8%	88.6%	89.9%
Net margin	42.9%	45.8%	47.5%	51.3%	42.0%	19.8%	44.7%	31.8%
Current ratio	0.64×	0.63×	0.65×	0.45×	1.19×	0.4×	0.92×	0.66×
Debt / equity	0.1×	0.03×	0.07×	0.08×	0.25×	0.02×	0×	0×
Interest coverage	21.23×	34.38×	24.47×	30.32×	50.59×	92.4×	138×	280.38×
Dividend yield	3.9%	3.5%	4.1%	2.1%	2.1%	3.8%	5.1%	4.4%
Payout ratio	118.4%	109.8%	100.7%	33.9%	50.6%	277.0%	163.6%	228.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.1%	7.8%	8.2%	11.5%	4.8%	1.4%	4.5%	3.1%
Return on invested capital	7.1%	10.4%	10.2%	13.3%	5.8%	4.5%	8.2%	6.2%
Return on assets	6.5%	6.7%	6.9%	9.3%	3.5%	1.2%	4.1%	2.8%
Free cash flow yield	4.1%	5.4%	5.5%	10.7%	-6.8%	6.3%	5.9%	5.2%
Earnings yield	3.3%	3.2%	4.1%	6.1%	4.1%	1.4%	3.1%	1.9%
Enterprise value	CA$6.5B	CA$6.8B	CA$5.7B	CA$5.4B	CA$3.7B	CA$2.4B	CA$3.6B	CA$4.2B
Net debt / EBITDA	0.56×	0.22×	0.41×	0.38×	2.44×	0.31×	0.04×	0.02×
Cash conversion cycle (days)	37	-265	-101	-113	-148	-171	-49	-56