A Look At Elemental Royalty (TSXV:ELE) Valuation As A Non Deal Roadshow Draws Investor Attention

Upcoming non deal roadshow puts Elemental Royalty in focus

Elemental Royalty (TSXV:ELE) is heading into increased investor attention as its CEO David Morrell Cole and President & COO Frederick Augustus Ronald Peter McMillan Bell prepare to present at a non deal roadshow on January 26, 2026.

See our latest analysis for Elemental Royalty.

That upcoming roadshow comes after a strong run in Elemental Royalty’s share price, with a 30 day share price return of 31.04% and a 90 day gain of 43.72%, alongside a 1 year total shareholder return of 160.17% that signals firm positive momentum despite a 1 day share price pullback of 4.19% to CA$30.44.

If this kind of momentum has your attention, it could be a moment to broaden your watchlist and check out fast growing stocks with high insider ownership as potential next ideas.

With Elemental Royalty posting very large 1 year returns, a 31% 30 day gain and trading at CA$30.44 against an analyst price target of CA$35.75, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Preferred Price-to-Sales of 43.1x: Is it justified?

Elemental Royalty is trading on a P/S of 43.1x, which is described as expensive versus both its peers and the wider Canadian metals and mining group, despite the recent share price strength.

The P/S ratio compares the company’s market value with its revenue and is often used when earnings can be uneven or influenced by one off items, which is the case here. With revenue of CA$33.1m and net income of CA$5.1m, the current multiple suggests investors are paying a high price for each dollar of sales, likely reflecting expectations around future growth in royalties and margins.

In contrast, Elemental Royalty is flagged as good value when its 43.1x P/S is set against an estimated fair P/S of 51.2x. Our work suggests the market could move toward that level if current assumptions hold. However, compared with a peer average P/S of 6.9x and a Canadian metals and mining industry average of 9.1x, the current 43.1x stands out as significantly higher. This means a lot is already being asked of future revenue and profit delivery.

Explore the SWS fair ratio for Elemental Royalty

Result: Price-to-Sales of 43.1x (OVERVALUED)

However, you still need to weigh risks such as royalty revenue concentration and the possibility that current P/S expectations prove too optimistic if assumptions change.

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

Another angle from our DCF model

If the 43.1x P/S ratio makes Elemental Royalty look expensive, our DCF model presents a very different picture, with an estimated value of CA$246.39 per share versus the current CA$30.44. That is flagged as trading 87.6% below fair value. This raises the question of which signal is more reliable.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Elemental Royalty for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 868 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own Elemental Royalty Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a personalised Elemental Royalty story in just a few minutes: Do it your way.

A great starting point for your Elemental Royalty research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Elemental Royalty is on your radar, do not stop there. Use the same energy to widen your opportunity set with focused screens tailored to what you care about most.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com