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:
We started the process of determining a valid price forecast for Royal Gold Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Royal Gold Inc ranked in the 41th 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 1% of the company's capital is sourced from debt; this is greater than only 6.16% of the free cash flow producing stocks we're observing.
RGLD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.2% of tickers in our DCF set.
As a business, Royal Gold Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 19.09% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Royal Gold ([[RGLD]] +0.3%) reports it sold 51K gold equiv. oz. related to its streaming agreements during the June quarter, in line with guidance of 50K-55K gold equiv. oz., with 25K gold equiv. oz. in inventory at the end of the quarter.The company says it sold 44K oz. of gold,...
Royal Gold Inc (RGLD) Q3 2020 earnings call dated May 07, 2020 Corporate Participants: Alistair Baker — Director of Business Development William H. Heissenbuttel — President and Chief Executive Officer Mark E. Isto — Executive Vice President and Chief Operating Officer Paul Libner — Chief Financial Officer and Treasurer Analysts: Josh Wolfson — RBC Capital Markets — Analyst Brian MacArthur — Raymond James — Analyst Adam Graf — B. […]