Is Permian Basin Royalty Trust overvalued or undervalued?

As of 30 June 2025, the valuation grade for Permian Basin Royalty Trust has moved from expensive to very expensive. This indicates that the stock is overvalued. Key valuation ratios include a P/E ratio of 23, an EV to EBIT of 23.14, and an EV to EBITDA of 23.12, all of which are significantly higher than its peers. For instance, Blackstone Secured Lending Fund has a P/E ratio of 10.85, while Viper Energy, Inc. shows a P/E of 8.34, highlighting the relative overvaluation of Permian Basin Royalty Trust.
In terms of recent performance, the company has outperformed the S&P 500 with a year-to-date return of 64.44% compared to the S&P 500's 12.22%. However, despite this strong performance, the elevated valuation ratios suggest that the stock may not be a prudent investment at current levels.