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Filing Flows › Royal Gold (RGLD) › Takeover & LBO

Is Royal Gold (RGLD) a takeover target?

A leveraged buyout at today's price plus 30% ($297.40 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $175.37 a share (−23% against today's $228.77). Historically 2.3% of companies with its figures were bought within a year (0.46× the average).

Share price$228.77
Offer at +30%$297.40
Buyer's IRR0%
Most for 20%$175.37
EV / EBITDA13.5×
Buyout debt5.5× EBITDA

The buyout, step by step

EntryAmountHow
Offer price a share$297.40today's $228.77 plus 30%
× shares84.9 million
= Equity value$25.2B
+ Debt refinanced$146M
− Cash$185M
+ Other claims$45.8Mpreferred stock, minority interests
= Enterprise value$25.3B17.5× EBITDA of $1.4B
Fees$505M2% of the price
New debt$7.9B5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA
Buyer's own money$17.8B69% of the cost

5 years under the buyer

Royal Gold: buyout debt left, year by yearRoyal Gold: buyout debt left, year by year$7.9BEntry$7.2BYear 1$6.3BYear 2$5.5BYear 3$4.5BYear 4$3.4BYear 5
Free cash flow after interest and tax repays the debt; a shortfall is borrowed.
YearRevenueEBITDAInterestFree cash flowDebt left
Year 1$1.8B$1.5B$606M$755M$7.2B
Year 2$1.8B$1.5B$548M$820M$6.3B
Year 3$1.8B$1.5B$486M$896M$5.5B
Year 4$1.9B$1.5B$417M$983M$4.5B
Year 5$1.9B$1.6B$342M$1.1B$3.4B

The exit and the buyer's return

ExitAmount
Exit multiple13.5× EBITDAtoday's trading multiple, before any premium
Enterprise value at exit$21.5B
− Debt left$3.4B
= Buyer's equity$18.1B
Money multiple1.01×on $17.8B put in
Buyer's yearly return (IRR)0.3%

Price against return

What the buyer makes at other premiums over today's $228.77; the IRR reaches 20% at $175.37 a share.

PremiumPrice a shareBuyer's IRR
10%$251.655.4%
20%$274.522.7%
30%$297.400.3%
40%$320.28−1.8%
50%$343.16−3.7%

The figures used

FigureAmount
Revenue, last 12 months$1.8B
EBITDA, last 12 months$1.4B81.9% of revenue
Depreciation and amortization$349M
Debt$146M
Cash$185M
Share price$228.77on Oct 30, 2026

Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 1.1% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 19% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.

What a takeover could cost

Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Royal Gold would cost about $262.86 a share, $22.3B for all its shares.

Premium%Price a shareAll shares
Low end (a quarter of deals paid less)9.5%$250.50$21.3B
Median14.9%$262.86$22.3B
High end (a quarter paid more)33.6%$305.64$25.9B

The odds, from history

Historically 2.3% of companies with its figures were bought within a year (0.46× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.

Royal Gold's latest quarter

Royal Gold, Q3 2026: revenue $465M (+84% year over year), operating margin 65.4%, net earnings $227M, operating cash flow $344M. The chart follows the revenue to costs, profit and cash.

Questions

Is Royal Gold being acquired?

No headline, 8-K or 13D about a sale is on file in the last year.

Could private equity buy Royal Gold?

A leveraged buyout at today's price plus 30% ($297.40 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $175.37 a share (−23% against today's $228.77).

What would a takeover of Royal Gold cost?

Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Royal Gold would cost about $262.86 a share, $22.3B for all its shares.

Open the interactive view →

Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.