Is Royal Gold, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Royal Gold, Inc. has moved from fair to expensive. The company appears to be overvalued based on its current financial metrics. Key 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 a premium valuation compared to its peers. In comparison, Coeur Mining, Inc. has a P/E ratio of 44.72 and Hecla Mining Co. has a P/E ratio of 61.32, indicating that Royal Gold's valuation is significantly higher than some of its competitors in the industry.
Despite a strong year-to-date return of 46.95% compared to the S&P 500's 13.30%, the long-term performance shows a decline, with a 10-year return of 58.21% versus the S&P 500's 227.77%. This discrepancy further emphasizes the overvaluation of Royal Gold, Inc. relative to its historical performance and market benchmarks.