Assessing Gold Royalty (NYSEAM:GROY) Valuation After Its $90 Million Follow-On Equity Raise

Gold Royalty (NYSEAM:GROY) just closed a $90 million follow on equity offering at $4 per share, issuing 22.5 million new common shares. This represents a meaningful capital raise that immediately reshapes its growth runway.

See our latest analysis for Gold Royalty.

The equity raise caps a big year for the stock, with a roughly 230% year to date share price return and about 247% one year total shareholder return, signaling that momentum is clearly building as investors re rate its growth prospects.

If this kind of re rating story has your attention, it could be a good time to explore fast growing stocks with high insider ownership as potential next wave candidates.

After such a sharp rerating and a sizable capital injection, is Gold Royalty still trading below its true worth, or have investors already bid the shares up to fully reflect its future growth potential?

Most Popular Narrative: 19.4% Undervalued

With the narrative fair value sitting meaningfully above Gold Royalty's last close of $4.09, the story frames today’s price as a sizable discount.

The revenue growth forecast has increased meaningfully from roughly 62.2 percent to 76.7 percent, indicating stronger anticipated top line expansion. The net profit margin assumption has decreased moderately from about 54.6 percent to 50.1 percent, incorporating more conservative profitability expectations.

Read the complete narrative.

Curious how faster growth but leaner margins can still point to higher value? The narrative relies on bold cash flow scaling and a richer future earnings multiple. Want to see the full set of assumptions behind that view?

Result: Fair Value of $5.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could unravel if key mines face production setbacks, or if prolonged gold price weakness undercuts expected cash flow and valuation upside.

Find out about the key risks to this Gold Royalty narrative.

Build Your Own Gold Royalty Narrative

If you are not fully aligned with this outlook or prefer running your own numbers, you can quickly craft a personalized view in under three minutes: Do it your way.

A great starting point for your Gold Royalty research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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