Royalty Pharma Plc (RPRX) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Royalty Pharma Plc stock $19.01, price $67.56, that is 71.9% below the price, quality 70 out of 100. Rating: strongly overvalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
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HealthcareUS · Home United Kingdom · ISIN GB00BMVP7Y09
RPSome dataNov 5, 2026
Royalty Pharma Plc
RPRX · US
Solid,but very expensive
Our calculation puts a fair price 72% below what the stock costs today.
Quality 70/100
Highly profitable · 32.0% net margin (TTM)
Generates free cash flow
1.3% dividend yield · Well covered
Wide moat66/100
Positive coverage
Revenue last quarter +17% vs. a year ago.
Mixed Growth(revenue 5y +2.3 %/yr in USD)
Moderate debt
Mixed vs. peers(8/15)
Insiders sold $34.6M (6M)
Some data
Fair value $19.01 · Strongly overvalued (−71.9%)
Risks from the AI analysis
🚩AI could shorten royalty streams🚩Rivals could capture more deals🚩Dependence on Vertex royalties
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $23.36 – $67.56 · fair‑value band $12.08 – $25.93 · the $67.56 price screens above the $19.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States.
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Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes.
The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.
Stock analysis
Royalty Pharma Plc (RPRX) currently trades at $67.56, while our model-based Fair Value estimate is $19.01, 72% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $37.71 per share, and 0 of the 21 models we run sit above the $67.56 price.
Bear case: the Earnings-Based group reads lowest at $4.71, and 21 of the 21 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $12.08 (bear) to $25.93 (bull), the price of $67.56 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Royalty Pharma Plc reported revenue of $2.4B in FY2025 versus $2.3B in FY2021, a compound +1.0%/yr. Reported net income was $771M in FY2025, compounding +5.6%/yr from FY2021.
Key figures
Market cap $37.6B Large · P/E ratio 44.2 · P/S ratio 11.6 · EPS (TTM) $1.53 · Dividend yield 1.3% · Net margin 32.0% · Return on equity 14.0% · Return on assets (EBIT) 6.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 66 out of 100 (medium confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades at its 52-week high and 82% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 10% fair-value upside, at −72%, RPRX screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($4.71 to $37.71). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$12.08Fair Value $19.01Bull$25.93
Price $67.56 · Downside -71.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.5266 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 4 officers or directors sold shares worth $34.6M and none bought.
SaleMarshall UristEVP, Research & Investments16× since Dec 1, 2025: 296,968 shares, avg. $42.24$12.5MOct 5, 202610b5-1 plan
SaleChristopher HiteEVP & Chairman, Partnering4× since Jun 23, 2026: 480,000 shares, avg. $56.99$27.4MSep 22, 202610b5-1 plan
SaleTerrance P. CoyneEVP & CFO14× since Nov 17, 2025: 910,401 shares, avg. $42.79$39.0MAug 13, 202610b5-1 plan
SaleGregory NordenDirector3,045 shares at $53.00$161,385May 14, 202610b5-1 plan
SaleGeorge W. LloydEVP, Investments & CLO3× since Nov 19, 2025: 355,426 shares, avg. $38.85$13.8MDec 18, 202510b5-1 plan
Plus 15 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.64/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+5.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.3%
Start year 2020 (pandemic). Over 10 years: +3.7% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+31.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−11.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−12.6%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−11.9% vs 3.8%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.75% → 66%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+14.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.2% a year for the price and +12.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (90 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Royalty Pharma's specialized royalty model provides a moderate moat through funding for rights on approved and late-stage drugs, yet thin public signals and limited differentiation data constrain clear competitive strength.
Main risk: Generative AI might enable rapid development of improved drug versions that erode market share and compress the duration of royalty payments on existing holdings.
Bull case: By deploying its own AI systems for faster diligence and partner support the company could secure higher-quality deals and extend effective royalty durations despite technological shifts.
Bear case: If AI accelerates biobetter competition, rivals win more originations and the Vertex dispute cuts receipts, cash flows from core holdings could decline materially over several years.
Royalty Pharma builds its portfolio by funding biotechs in exchange for royalties on approved and late-stage drugs. Several key Phase 3 readouts are still ahead this year alongside the Q3 results due in early November. Will steady receipts from the current holdings prove more reliable than the variable outcomes from new deals and partner progress?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Biotechnology · 559 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score70 · Top 25%
Fair Value upside−71.9% · Below median
Profitability
Return on equity (12 months)14.0% · Top 25%
Return on assets6.8% · Top 25%
Net margin (12 months)55.0% · Top 25%
Operating margin (12 months)19.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)16.5% · Above median
Dividend yield (12 months)1.3% · Above median
Balance sheet
Debt / equity1.32× · Highest 25%
Valuation Multiplesvs Biotechnology median · lower = cheaper
P/E (12 months)44.2× · Pricier than median
P/B5.81× · Priciest 25%
P/S (12 months)25.48× · Priciest 25%
Price / free cash flow26.0× · Cheaper than median
EV/EBITDA50.3× · Priciest 25%
PEG1.55× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)83· sector 0
PAST (return on equity)56· sector 0
HEALTH (low debt)34· sector 97
DIVIDEND (yield)27· sector 22
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Royalty Pharma Plc (RPRX) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $19.01 versus a price of $67.56, about 72% lower (overvalued).
What is the fair value of RPRX?
Our model-based fair value for Royalty Pharma Plc is $19.01 (as of Nov 5, 2026), built from audited fundamentals. The current price: $67.56.
What is the quality score of RPRX?
Royalty Pharma Plc has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Royalty Pharma Plc (RPRX)?
Our model-based price target is the fair value of $19.01 (as of Nov 5, 2026) from 22 valuation models. Cautious scenario $12.08, optimistic scenario $25.93. It is a calculation from audited fundamentals, not an analyst target.
What is the Royalty Pharma Plc stock forecast for 2026?
Our models put fair value at $19.01, about 72% lower versus a price of $67.56 (overvalued). Cautious scenario $12.08, optimistic scenario $25.93. The calculation is refreshed regularly with new filings.
What is the revenue of Royalty Pharma Plc (RPRX)?
Royalty Pharma Plc reported trailing-twelve-month revenue of about $2.5B (latest available figure, as of Nov 5, 2026).
Does Royalty Pharma Plc pay a dividend?
Royalty Pharma Plc currently shows a dividend yield of 1.35% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Royalty Pharma Plc (RPRX)?
For today's price to be fair in a discounted-cash-flow model, Royalty Pharma Plc would have to grow free cash flow by +3.6 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.3 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of RPRX use?
Our models discount Royalty Pharma Plc at 8.1 %: a base by market capitalisation (large), damped by beta 0.36, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Royalty Pharma Plc that is +3.6 % per year a year over ten years, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has Royalty Pharma Plc (RPRX) delivered so far?
Over the past 5 years revenue at Royalty Pharma Plc grew +2.3 % a year. The price currently implies +3.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Royalty Pharma Plc (RPRX) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Royalty Pharma Plc (+3.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Royalty Pharma Plc (RPRX)?
The free-cash-flow yield on the price is 6.62 %: that much free cash flow Royalty Pharma Plc produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Royalty Pharma Plc (RPRX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Royalty Pharma Plc it is $19.01 per share (as of Nov 5, 2026), against a price of $67.56. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Royalty Pharma Plc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, RPRX trades above its calculated fair value: price $67.56, fair value $19.01, a gap of about −72% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RPRX?
No. The price is what the market pays today ($67.56); the fair value is what the company's own numbers justify ($19.01). For Royalty Pharma Plc the two are $48.55 per share apart. That gap is exactly why we show both numbers side by side.
How much is Royalty Pharma Plc worth?
The market values Royalty Pharma Plc at about $37.6B (market capitalisation, as of Nov 5, 2026). Per share that is $67.56; our models calculate a fair value of $19.01 per share.
What do the bullish and bearish scenarios say about RPRX?
Our models span a range for Royalty Pharma Plc: cautious scenario $12.08, base $19.01, optimistic $25.93 per share (as of Nov 5, 2026, price $67.56). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RPRX?
Royalty Pharma Plc trades at a price-to-earnings ratio of 44.2 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $19.01 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 28.2 (reported for FY2025: 49.0). Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), earnings ex one-offs: 12.4. Other multiples: PEG 1.5, P/B 5.8, P/S 25.5, EV/EBITDA 50.3.
What is the PEG ratio of RPRX?
The PEG ratio of Royalty Pharma Plc is 1.55 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Royalty Pharma Plc (RPRX)?
Balance-sheet figures for Royalty Pharma Plc (as of Nov 5, 2026): return on equity 14.0%, debt of 1.32 per unit of equity. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is RPRX from its 52-week high?
Royalty Pharma Plc trades at $67.56, at its 52-week high of $67.56 and 82% above the low of $37.12 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $19.01 is for.
Which stocks are comparable to Royalty Pharma Plc?
From the same area (Healthcare) we also value Vertex Pharmaceuticals Incorporated, Regeneron Pharmaceuticals, Inc, argenx SE, Samsung Biologics Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Royalty Pharma Plc stock attractive at the current price?
The data as of Nov 5, 2026: price $67.56, calculated fair value $19.01 (−72%), Quality Score 70/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RPRX calculated?
We run Royalty Pharma Plc through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $19.01, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Royalty Pharma Plc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Royalty Pharma Plc (RPRX)?
The closing price on Nov 4, 2026 was $67.56. Our model-based fair value is $19.01, about 72% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Royalty Pharma Plc right now?
The price sits above even our optimistic bull case ($25.93). The favourable scenario is already priced in. Solid but not exceptional quality (70/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($12.08 to $25.93) leaves room in how you read the outcome.
Where does the earnings growth of Royalty Pharma Plc (RPRX) come from?
Earnings per share at Royalty Pharma Plc grew +6.2 % a year from 2015 to 2025. Broken into its drivers: revenue per share +3.8 %, EBIT margin +4.4 %, tax rate −2.0 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Royalty Pharma Plc
How large is the market capitalisation of Royalty Pharma Plc (RPRX)?
The market capitalisation of Royalty Pharma Plc is $37.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Royalty Pharma Plc (RPRX)?
The price-to-sales ratio of Royalty Pharma Plc is 11.6 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Royalty Pharma Plc (RPRX)?
Earnings per share at Royalty Pharma Plc are $1.53 (price ÷ EPS = P/E 44.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Royalty Pharma Plc (RPRX)?
The dividend yield of Royalty Pharma Plc is 1.3% (payout 34.2%, on adjusted earnings, reported 59.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Royalty Pharma Plc (RPRX)?
The net margin of Royalty Pharma Plc is 32.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Royalty Pharma Plc (RPRX)?
The return on equity (ROE) of Royalty Pharma Plc is 14.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Royalty Pharma Plc (RPRX)?
On an EBIT basis the return on assets of Royalty Pharma Plc is 6.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Royalty Pharma Plc (RPRX)?
The operating margin of Royalty Pharma Plc is 19.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Royalty Pharma Plc (RPRX)?
Revenue at Royalty Pharma Plc is growing +16.5% versus a year earlier (3y avg +2.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Royalty Pharma Plc (RPRX)?
Earnings per share at Royalty Pharma Plc are growing −46.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Royalty Pharma Plc (RPRX) carry?
The net debt of Royalty Pharma Plc is $8.3B (fiscal year 2025, ≈ 3.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 5, 2026