--- title: "Is It Too Late To Consider OR Royalties (TSX:OR) After Its Strong Multi‑Year Rally?" type: "News" locale: "en" url: "https://longbridge.com/en/news/288792093.md" description: "OR Royalties (TSX:OR) faces mixed valuation signals following a strong multi-year rally. While its stock price has surged nearly 200% over five years, DCF analysis suggests it is undervalued by 41.4%, with an intrinsic value of $85.69 versus the current ~$50.25. Conversely, its P/E ratio of 26.67x exceeds both industry averages and its proprietary 'Fair Ratio' of 16.61x, indicating overvaluation. The company holds a general valuation score of 3/6, screening as undervalued on half of key checks." datetime: "2026-06-05T01:30:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288792093.md) - [en](https://longbridge.com/en/news/288792093.md) - [zh-HK](https://longbridge.com/zh-HK/news/288792093.md) --- # Is It Too Late To Consider OR Royalties (TSX:OR) After Its Strong Multi‑Year Rally? - If you are wondering whether OR Royalties at around C$50.25 is priced fairly or asking too much for future potential, the key is to look past the headline share price and into what the valuation tools are really saying. - The stock has returned 1.6% over the last 7 days, 2.1% over the last 30 days, 3.8% year to date, 39.9% over 1 year, 139.4% over 3 years and 198.6% over 5 years, which naturally raises questions about how much of the story is already reflected in the price. - Recent coverage of OR Royalties has focused on its role within the broader Metals and Mining space and how investors are treating royalty and streaming models as part of their portfolios. This context is important because it helps explain why interest in the stock has stayed elevated, even when day to day price moves may look modest. - Right now, the company has a valuation score of 3/6. This means it screens as undervalued on half of the key checks. The next sections will break down what that looks like under different valuation methods before finishing with a broader way to think about what fair value really means for you. Find out why OR Royalties's 39.9% return over the last year is lagging behind its peers. ### Approach 1: OR Royalties Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting future cash flows and discounting them back to today using a required return. It focuses on the cash the business can generate for shareholders rather than accounting profits. For OR Royalties, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is $76.09 million. Analyst and extrapolated forecasts from Simply Wall St point to free cash flow reaching $771.75 million in 2035, with interim projections such as $272.07 million in 2026 and $491.00 million in 2029. When all these projected cash flows are discounted back to today, the implied intrinsic value comes out at $85.69 per share. Compared with the current share price of around CA$50.25, the DCF output suggests the stock trades at a 41.4% discount to this estimate, which screens as materially undervalued on this model. **Result: UNDERVALUED** Our Discounted Cash Flow (DCF) analysis suggests OR Royalties is undervalued by 41.4%. Track this in your watchlist or portfolio, or discover 9 more high quality undervalued stocks. OR Discounted Cash Flow as at Jun 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for OR Royalties. ### Approach 2: OR Royalties Price vs Earnings For a profitable company, the P/E ratio is often a useful shorthand for how much investors are paying for each dollar of earnings. It connects directly to what the business is actually earning today, which is usually easier to interpret than revenue or asset based multiples. What counts as a “normal” P/E depends on how the market views a stock’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk typically lines up with a lower P/E. OR Royalties currently trades on a P/E of 26.67x. That sits above the Metals and Mining industry average of 15.85x and the peer average of 10.74x, which on simple comparisons makes the stock look expensive. Simply Wall St goes a step further with its proprietary “Fair Ratio” of 16.61x for OR Royalties. This Fair Ratio reflects factors such as earnings growth expectations, industry, profit margins, market capitalization and company specific risks, so it can give a more tailored benchmark than broad industry or peer averages. Comparing the current P/E of 26.67x with the Fair Ratio of 16.61x, OR Royalties screens as trading above this fitted range. **Result: OVERVALUED** TSX:OR P/E Ratio as at Jun 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 3 top founder-led companies. ## Upgrade Your Decision Making: Choose your OR Royalties Narrative Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St's Community page let you attach a clear story about OR Royalties to specific forecasts for revenue, earnings and margins, link that story to a calculated fair value, and then compare it with the live share price to help you decide whether to act. Each Narrative updates automatically as new news or earnings arrive. This is why one investor might back a more cautious fair value near CA$52.24, while another sees a case for something closer to CA$80.37 based on different expectations for future performance. Do you think there's more to the story for OR Royalties? Head over to our Community to see what others are saying! TSX:OR 1-Year Stock Price Chart _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._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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