Franco Nevada (TSE:FNV)

Hi Selva,

Not concerned in the least. Franco Nevada has always had negative retained earnings given the nature of its business. Furthermore, this year's earnings were negatively impacted by costs related to COVID-19 and as such the PE is slightly inflated. If you look at it on a forward basis, valuation drops to 37 times forward earnings which is below its five year historical average.

One need only look at the past decade and see how reliable of a stock FNV has been. Over this time it has consistently had negative retained earnings and high P/E ratios.

Mat