The ongoing rally in gold prices continues to capture market attention as the metal nears the substantial psychological level of $4,700 per ounce, having recently touched an all-time peak at $4,640.13. This surge is reflected not only in commodity markets but also in shares of major gold royalty and streaming companies, notably Franco-Nevada Corporation (NYSE:FNV) and Osisko Gold Royalties (NYSE:OR). Both entities have significantly benefited from the underlying precious metal's strength, witnessing marked upward trends in their stock prices.
Despite this impressive price appreciation and the companies’ ostensibly strong market positions, emerging valuation indicators are raising investor caution. According to the latest insights derived from Benzinga Edge data, the valuation benchmarks referred to as “Value” scores—which assess a stock’s market price in relation to its assets, earnings, and sales—have plunged for both Franco-Nevada and Osisko into the lowest 10th percentile across the market this week. This substantial deterioration in valuation metrics suggests that the stocks may be trading above levels justified by their financial fundamentals.
Analyzing this downturn in value scores over a week-to-week comparison reveals distinct trends. Franco-Nevada’s Value score has declined from 11.27 to 9.40, indicating an eroding balance between share price and key financial indicators. Osisko Gold Royalties has experienced an even sharper fall, with its Value score diminishing from 10.59 to an especially low 8.81. These ratings are indicative of valuation concerns despite both companies' demonstrated resilience in operations and asset quality.
Interestingly, the decline in Value scores correlates directly with the strong investor demand for these stocks, reflecting their success in market momentum. For context, both companies display exceptionally high Momentum scores, with Osisko at 93.72 and Franco-Nevada at 91.97, signifying robust relative price advances over various periods. Their stock charts consistently show positive trajectories across short-term, medium-term, and long-term horizons.
Looking at concrete price performance, Franco-Nevada’s stock has appreciated by 49.92% over the past six months, surged 87.66% over the preceding year, and advanced 13.70% so far in 2026. At the time of recent premarket trading, FNV was up by 0.89%. Osisko Gold Royalties has recorded comparable, if not superior growth rates, with a 49.14% gain over six months, a notable 118.58% increase during the last year, and a 14.36% year-to-date uplift. During recent premarket sessions, OR shares rose by 0.88%.
The data underscore a scenario where intense market enthusiasm is driving prices higher, potentially outpacing fundamental valuations that consider tangible financial metrics such as earnings, sales figures, and asset bases. This divergence raises questions about the sustainability of these elevated valuation levels in the absence of parallel growth in core financial results.
Nevertheless, both Franco-Nevada and Osisko continue to benefit from the broader gold market upswing, which bolsters their revenue outlook, given their roles as royalty and streaming companies receiving payments linked to production volumes and metal prices. Their positions allow exposure to gold’s price movements without direct operational risks associated with mining activities.
It remains essential for investors to balance the apparent strength in momentum and recent price gains against the weakening value-based signals. While strong momentum can persist, the lower valuation percentile rankings warn of potential overextensions that may lead to corrections if market sentiment or fundamentals adjust.
In conclusion, as gold pushes historically high price points, the associated royalty companies display vigorous stock performance but concurrently reveal signs of overvaluation when analyzed through comprehensive value metrics. Observers and market participants should remain vigilant to these trends, weighing the benefits of growth alongside the inherent risks presented by stretched valuation levels.