Discounted Cash Flow (DCF) Analysis Levered

Royal Gold, Inc. (RGLD)

$123.49

-3.28 (-2.59%)

All numbers are in Millions, Currency in USD

Stock DCF: 287.42 | 123.49 | undervalue

Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	498.82	615.86	760.35	938.75	1,159.01	1,430.95	1,766.69	2,181.20	2,692.98
Revenue (%)
Operating Cash Flow	340.75	407.15	511.05	630.95	778.99	961.76	1,187.42	1,466.02	1,809.99
Operating Cash Flow (%)
Capital Expenditure	-155.99	-168.15	-222.68	-274.93	-339.44	-419.08	-517.41	-638.81	-788.69
Capital Expenditure (%)
Free Cash Flow	184.77	239	288.36	356.02	439.55	542.68	670.01	827.21	1,021.30

Weighted Average Cost Of Capital

Share price	$ 123.49
Beta	0.647
Diluted Shares Outstanding	65.63
Cost of Debt
Tax Rate	10.93
After-tax Cost of Debt	4.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.747
Total Debt	496.82
Total Equity	8,104.35
Total Capital	8,601.17
Debt Weighting	5.78
Equity Weighting	94.22
Wacc

Build Up Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	498.82	615.86	760.35	938.75	1,159.01	1,430.95	1,766.69	2,181.20	2,692.98
Operating Cash Flow	340.75	407.15	511.05	630.95	778.99	961.76	1,187.42	1,466.02	1,809.99
Capital Expenditure	-155.99	-168.15	-222.68	-274.93	-339.44	-419.08	-517.41	-638.81	-788.69
Free Cash Flow	184.77	239	288.36	356.02	439.55	542.68	670.01	827.21	1,021.30
WACC
PV LFCF			327.74	379.55	439.55	509.03	589.50	682.69	790.61
SUM PV LFCF									2,824.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.61
Free cash flow (t + 1)	1,041.73
Terminal Value	22,597.14
Present Value of Terminal Value	16,408.30

Intrinsic Value

Enterprise Value	19,232.98
Net Debt	370
Equity Value	18,862.98
Shares Outstanding	65.63
Equity Value Per Share	287.42