DCF Tool

RGLD

Royal Gold, Inc. – Gold Ore Mining
Royal Gold Inc. provides investors exposure to precious metals without many of the risks of investing in traditional precious metal producers.
Analysis Results
Intrinsic Value $488.99
Latest Price $114.41
Relative Value 77% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 21.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.57 0.545
2023 0.692 0.632
2024 0.84 0.734
2025 1.02 0.852
2026 1.24 0.988
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 37.1 billion. This corresponds to a present value of 28.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.75 billion. Adding in the terminal value gives a total present value of 32.1 billion.

There are presently 65.6 million outstanding shares, so the intrinsic value per share is 488.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 297,135,000
Current Cash 225,916,000
Current Liabilities 52,083,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,136,000
Change in NCWC 19,669,000
EBIT 303,696,000
Tax Provision 36,867,000
Depreciation and Amortization 183,569,000
Capital Expenditure 0
Unlevered Free Cash Flow 473,968,914
Current Assets 362,150,000
Current Cash 319,128,000
Current Liabilities 43,555,000
Current Debt 0
Non-Cash Working Capital (NCWC) -533,000
Change in NCWC -2,127,000
EBIT 200,286,000
Tax Provision -3,654,000
Depreciation and Amortization 175,434,000
Capital Expenditure 0
Unlevered Free Cash Flow 373,593,000
Current Assets 154,679,000
Current Cash 119,475,000
Current Liabilities 33,610,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,594,000
Change in NCWC 15,920,000
EBIT 140,707,000
Tax Provision 17,498,000
Depreciation and Amortization 163,056,000
Capital Expenditure 0
Unlevered Free Cash Flow 296,581,476
Current Assets 125,807,000
Current Cash 88,750,000
Current Liabilities 51,383,000
Current Debt 0
Non-Cash Working Capital (NCWC) -14,326,000
Change in NCWC -37,803,000
EBIT 164,829,000
Tax Provision 14,772,000
Depreciation and Amortization 163,696,000
Capital Expenditure 0
Unlevered Free Cash Flow 290,722,000
Current Assets 140,182,000
Current Cash 85,847,000
Current Liabilities 30,858,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,477,000
Change in NCWC -1,979,000
EBIT 145,942,000
Tax Provision 26,441,000
Depreciation and Amortization 159,636,000
Capital Expenditure 0
Unlevered Free Cash Flow 271,135,112
Current Assets 164,769,000
Current Cash 116,633,000
Current Liabilities 22,680,000
Current Debt 0
Non-Cash Working Capital (NCWC) 25,456,000
Change in NCWC 2,528,000
EBIT 103,404,000
Tax Provision 60,680,000
Depreciation and Amortization 141,108,000
Capital Expenditure -1,346,109,000
Unlevered Free Cash Flow -1,099,069,000
Current Assets 790,750,000
Current Cash 742,849,000
Current Liabilities 24,973,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,928,000
Change in NCWC -31,009,000
EBIT 115,574,000
Tax Provision 9,566,000
Depreciation and Amortization 93,486,000
Capital Expenditure -60,429,000
Unlevered Free Cash Flow 99,859,952
Current Assets 735,977,000
Current Cash 659,536,000
Current Liabilities 22,504,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,937,000
Change in NCWC 8,560,000
EBIT 108,720,000
Tax Provision 19,455,000
Depreciation and Amortization 91,342,000
Capital Expenditure -80,019,000
Unlevered Free Cash Flow 103,096,860
Current Assets 744,497,000
Current Cash 664,035,000
Current Liabilities 35,085,000
Current Debt 0
Non-Cash Working Capital (NCWC) 45,377,000
Change in NCWC -9,166,000
EBIT 171,504,000
Tax Provision 63,759,000
Depreciation and Amortization 85,020,000
Capital Expenditure -314,262,000
Unlevered Free Cash Flow -146,623,202
Current Assets 445,208,000
Current Cash 375,456,000
Current Liabilities 15,209,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,543,000
Change in NCWC 12,686,000
EBIT 158,216,000
Tax Provision 54,710,000
Depreciation and Amortization 75,001,000
Capital Expenditure -276,683,000
Unlevered Free Cash Flow -87,348,121

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