GROY - Gold Royalty: An Inferior Way To Play The Gold Price
- Gold Royalty Corp. is one of the worst-performing precious metals royalty stocks, down 16% year-to-date vs. a 10% year-to-date return in the Gold Juniors Index.
- This underperformance is likely attributed to the stock's expensive valuation heading into the year, with the stock trading at more than 35x FY2025 revenue as of December 30th.
- While the company recently boosted its medium-term revenue outlook, I continue to see the stock as expensive, with GRC trading at approximately ~30x FY2025 sales estimates.
- Given the relative overvaluation combined with a portfolio, where a large portion of development-stage/advanced exploration assets is held by a single operator, I see Gold Royalty Corp. as an inferior way to play the sector.
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Gold Royalty: An Inferior Way To Play The Gold Price