Royalty Pharma plc (RPRX) Fair Value & Analysis
Healthcare · US · Market cap $33.5B
Royalty Pharma plc
RPRX · US
Fair value as of: Jul 19, 2026
From 23 valuation models · updated 19 days ago
Share price −0.9% over the past month.
A strong business, but screening 58% overvalued on our models.
What matters now
- A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($34.00). The favourable scenario is already priced in.
- A fairly wide model range ($17.57 to $34.00) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.
How to read this chart
60‑month range $23.46 – $59.97 · fair‑value band $17.57 – $34.00 · the $57.26 price screens above the $24.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
Royalty Pharma plc (RPRX) currently trades at $57.26, while our model-based Fair Value estimate is $24.22, implying the stock looks roughly 57.7% overvalued today. We read business quality at 77/100 (high quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).
Over the trailing twelve months, Royalty Pharma plc generated revenue of $2.4B at a net margin of 33.9%. Revenue grew 11.0% year over year. It earns a return on equity of 13.8%. Net debt stands at $8.3B. Fundamentals as of Jul 19, 2026
Our scenario range runs from $17.57 (bear case) to $34.00 (bull case); at $57.26, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. 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 near its 52-week high and 75% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -43% fair-value upside, at -58%, RPRX screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 23 models by family
Widest divergence: Growth DCF ($125.59) versus Economic Profit ($5.77). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 66 · Market factors (momentum, volatility) 88
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States.
Full company description
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
RPRX screens 58% overvalued. Compare with Vertex Pharmaceuticals Incorporated →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Royalty Pharma (RPRX) Could Be 40% Undervalued After Its Dividend Decision
- Biotech Stocks At 52-Week Highs - ANIK & CHE Rise With Q2 Results, ICUI, NBIX, RPRX
- Royalty Pharma (RPRX) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
- Royalty Pharma acquires royalty interest in AstraZeneca’s cliramitug for up to $425 million from Neurimmune
Peer Group
Biotechnology · 606 stocks
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.
Valuation Multiples vs Biotechnology median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Biotechnology stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Vertex Pharmaceuticals Incorporated VRTX | $486.03 | $278.78 | -43% |
| Regeneron Pharmaceuticals, Inc REGN | $664.45 | $594.40 | -11% |
| Samsung Biologics Co 207940 | 1,368,000 KRW | 1,091,384 KRW | -20% |
| Celltrion, Inc 068270 | 175,800 KRW | 76,325 KRW | -57% |
| WuXi Biologics (Cayman) Inc 2269 | HK$39.54 | HK$30.42 | -23% |
| Innovent Biologics, Inc 1801 | HK$86.70 | HK$19.66 | -77% |
| Sino Biopharmaceutical Limited 1177 | HK$5.26 | HK$3.36 | -36% |
| ALTEOGEN Inc 196170 | 276,500 KRW | 44,444 KRW | -84% |
| RemeGen Co 688331 | ¥134.02 | ¥26.99 | -80% |
| Biocon Limited BIOCON | ₹440.70 | ₹57.36 | -87% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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