Is Gold Royalty Corp. overvalued or undervalued?

As of 16 May 2022, the valuation grade for Gold Royalty Corp. has moved from does not qualify to risky, indicating a significant downgrade in its perceived investment quality. The company appears to be overvalued, particularly given its negative P/E ratio and poor returns on capital, with a Price to Book Value of 0.62 and an EV to Sales ratio of 38.11. In comparison to peers, U.S. Silica Holdings, Inc. has a fair P/E of 12.49, while Ferroglobe PLC is also classified as risky with a P/E of -17.39, highlighting the challenges faced by Gold Royalty Corp. in its sector.
Despite a strong year-to-date return of 199.17% compared to the S&P 500's 12.22%, the company's underlying financial metrics suggest it may not sustain such performance, further supporting the view that it is overvalued in the current market.