Royal Gold, Inc. acquires and manages precious metals royalties, metal streams, and similar interests in the United States, Canada, Chile, and Mexico. The company also holds royalty and stream interests in mines and projects in other countries, including Argentina, Australia, Bolivia, Brazil, Burkina Faso, the Dominican Republic, Finland, Ghana, Guatemala, Honduras, Macedonia, Nicaragua, Peru, Russia, Spain, and Tunisia. The company was founded in 1981 and is based in Denver, Colorado.
RGLD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RGLD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Royal Gold Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Royal Gold Inc ended up being:
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 11.78% of the free cash flow producing stocks we're observing.
Royal Gold Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Royal Gold Inc? See HWKN, SSD, GGB, PPG, and NP.
When looking for the best stocks to buy and watch, focus on those with rising relative price strength. One stock that fits that bill is Royal Gold, which had its Relative Strength (RS) Rating upgraded from 77 to 83 Monday. When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.