Is CKX Lands, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for CKX Lands, Inc. has moved from very attractive to does not qualify, indicating a significant deterioration in its investment appeal. The company appears overvalued based on its current metrics, with a P/E ratio of 22, which is notably higher than the peer average of approximately 14.39 for similar companies. Additionally, CKX's EV to EBITDA stands at 12.58, which does not favorably compare to peers like Silver Spike Investment Corp. at 7.05, and its PEG ratio is extremely low at 0.01, suggesting limited growth prospects relative to its price.
In terms of peer comparisons, Permianville Royalty Trust has a P/E of 21.21, while North European Oil Royalty Trust shows a more attractive P/E of 8.64. The stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -11.51% compared to the S&P's 12.22%, reinforcing the notion that CKX Lands, Inc. is currently overvalued.