Is Royal Gold, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Royal Gold, Inc. has moved from fair to expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 29, a Price to Book Value of 3.62, and an EV to EBITDA of 18.40, all of which suggest that the stock is trading at a premium compared to its peers. In comparison, Coeur Mining, Inc. has a P/E of 44.72 and Hecla Mining Co. has a P/E of 61.32, both of which are higher than Royal Gold's ratio, yet they are considered fairly valued.
Despite the recent overvaluation, Royal Gold has shown strong performance with a year-to-date return of 42.60%, significantly outpacing the S&P 500's return of 12.22% in the same period. However, the long-term returns indicate a stark contrast, with a 10-year return of 52.28% compared to the S&P 500's 231.64%, reinforcing the notion that the stock may be overvalued at current levels.