Is Permian Basin Royalty Trust overvalued or undervalued?

As of 7 April 2025, the valuation grade for Permian Basin Royalty Trust has moved from very attractive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a P/E ratio of 23, an EV to EBITDA of 23.12, and an astonishing ROCE of 2251.94%.
In comparison to its peers, WisdomTree, Inc. has a P/E of 17.96 and an EV to EBITDA of 8.99, while Dorchester Minerals LP shows a P/E of 14.36 and an EV to EBITDA of 8.86, highlighting that Permian Basin Royalty Trust is trading at a premium compared to these companies. Furthermore, despite its recent performance showing a 12.09% return over the past year, which outpaces the S&P 500's 10.26%, the current valuation suggests that investors may be overestimating future growth potential.