Is San Juan Basin Royalty Trust overvalued or undervalued?

As of 13 August 2025, the valuation grade for San Juan Basin Royalty Trust moved from very expensive to does not qualify, indicating a significant downgrade in its valuation status. The company appears to be overvalued, as evidenced by its P/E ratio of 279, a Price to Book Value of 111.06, and an EV to EBITDA of 284.95, all of which are considerably high compared to typical industry standards.
In comparison to peers, Blackrock TCP Capital Corp. has a P/E of -51.75 and an EV to EBITDA of 8.30, highlighting the stark contrast in valuation metrics. Despite the overvaluation, San Juan Basin Royalty Trust has shown strong recent performance, with a year-to-date return of 52.22%, significantly outpacing the S&P 500's 12.22% return. However, its long-term performance has been less favorable, with a three-year return of -48.50% compared to the S&P 500's 70.41%.