Royal Gold Valuation

Is RG3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RG3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RG3 (€112.5) is trading below our estimate of fair value (€192.54)

Significantly Below Fair Value: RG3 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RG3?

Other financial metrics that can be useful for relative valuation.

RG3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.6x
Enterprise Value/EBITDA17.3x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does RG3's PE Ratio compare to its peers?

The above table shows the PE ratio for RG3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.7x
NDA Aurubis
22.5x32.4%€3.2b
WCH Wacker Chemie
16.8x19.5%€5.3b
FPE3 Fuchs
20.6x8.9%€5.2b
SY1 Symrise
42.7x15.5%€14.6b
RG3 Royal Gold
33.2x21.0%€7.9b

Price-To-Earnings vs Peers: RG3 is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the peer average (25.7x).


Price to Earnings Ratio vs Industry

How does RG3's PE Ratio compare vs other companies in the European Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RG3 is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the European Metals and Mining industry average (12.3x).


Price to Earnings Ratio vs Fair Ratio

What is RG3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RG3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.2x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: RG3 is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RG3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€112.50
€140.17
+24.6%
11.3%€156.95€107.43n/a12
Apr ’25€112.70
€132.24
+17.3%
12.0%€153.33€106.23n/a12
Mar ’25€97.38
€131.35
+34.9%
11.7%€153.18€106.12n/a12
Feb ’25€107.50
€134.65
+25.3%
8.8%€147.20€110.40n/a11
Jan ’25€111.10
€131.86
+18.7%
8.5%€147.07€110.30n/a11
Dec ’24€113.05
€133.19
+17.8%
8.6%€149.41€112.06n/a11
Nov ’24€98.34
€138.18
+40.5%
9.5%€165.22€113.29n/a11
Oct ’24€100.10
€140.08
+39.9%
9.5%€165.53€115.40n/a11
Sep ’24€103.20
€134.06
+29.9%
10.5%€160.95€112.20n/a13
Aug ’24€105.30
€131.57
+24.9%
10.4%€158.20€110.29n/a13
Jul ’24€105.20
€135.89
+29.2%
9.0%€161.02€112.25n/a13
Jun ’24€117.70
€137.34
+16.7%
8.1%€161.98€112.92n/a13
May ’24€119.60
€133.67
+11.8%
8.7%€158.46€110.47n/a13
Apr ’24€118.60
€132.45
+11.7%
5.4%€142.89€119.85€112.7012
Mar ’24€113.45
€132.86
+17.1%
6.8%€144.94€111.28€97.3813
Feb ’24€118.75
€128.28
+8.0%
6.4%€141.10€108.33€107.5013
Jan ’24€105.05
€124.78
+18.8%
8.2%€140.40€105.77€111.1013
Dec ’23€108.15
€129.07
+19.3%
8.0%€144.21€108.64€113.0512
Nov ’23€96.80
€135.64
+40.1%
8.7%€150.53€108.38€98.3412
Oct ’23€96.76
€141.33
+46.1%
9.1%€158.19€112.99€100.1012
Sep ’23€91.54
€136.46
+49.1%
9.3%€152.44€108.19€103.2012
Aug ’23€101.90
€143.23
+40.6%
11.4%€172.87€112.61€105.3012
Jul ’23€100.45
€146.62
+46.0%
7.9%€165.36€122.84€105.2012
Jun ’23€105.00
€147.64
+40.6%
7.2%€165.27€122.77€117.7012
May ’23€124.80
€144.59
+15.9%
7.7%€163.33€119.46€119.6013
Apr ’23€125.80
€128.32
+2.0%
9.8%€158.18€110.28€118.6013

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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