RPRX.O Relative Valuation
RPRX.O's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RPRX.O is overvalued; if below, it's undervalued.
Historical Valuation
Royalty Pharma PLC (RPRX.O) is now in the Fair zone, suggesting that its current forward PE ratio of 7.94 is considered Fairly compared with the five-year average of 9.92. The fair price of Royalty Pharma PLC (RPRX.O) is between 36.33 to 62.02 according to relative valuation methord.
Relative Value
Fair Zone
36.33-62.02
Current Price：39.73
Fair
7.94
PE
1Y
3Y
5Y
Trailing
Forward
9.59
EV/EBITDA
Royalty Pharma PLC. (RPRX.O) has a current EV/EBITDA of 9.59. The 5-year average EV/EBITDA is 10.31. The thresholds are as follows: Strongly Undervalued below 6.17, Undervalued between 6.17 and 8.24, Fairly Valued between 12.38 and 8.24, Overvalued between 12.38 and 14.45, and Strongly Overvalued above 14.45. The current Forward EV/EBITDA of 9.59 falls within the Historic Trend Line -Fairly Valued range.
10.42
EV/EBIT
Royalty Pharma PLC. (RPRX.O) has a current EV/EBIT of 10.42. The 5-year average EV/EBIT is 11.03. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 8.87, Fairly Valued between 13.20 and 8.87, Overvalued between 13.20 and 15.36, and Strongly Overvalued above 15.36. The current Forward EV/EBIT of 10.42 falls within the Historic Trend Line -Fairly Valued range.
5.31
PS
Royalty Pharma PLC. (RPRX.O) has a current PS of 5.31. The 5-year average PS is 5.97. The thresholds are as follows: Strongly Undervalued below 3.15, Undervalued between 3.15 and 4.56, Fairly Valued between 7.38 and 4.56, Overvalued between 7.38 and 8.78, and Strongly Overvalued above 8.78. The current Forward PS of 5.31 falls within the Historic Trend Line -Fairly Valued range.
5.72
P/OCF
Royalty Pharma PLC. (RPRX.O) has a current P/OCF of 5.72. The 5-year average P/OCF is 6.27. The thresholds are as follows: Strongly Undervalued below 3.04, Undervalued between 3.04 and 4.65, Fairly Valued between 7.88 and 4.65, Overvalued between 7.88 and 9.49, and Strongly Overvalued above 9.49. The current Forward P/OCF of 5.72 falls within the Historic Trend Line -Fairly Valued range.
5.63
P/FCF
Royalty Pharma PLC. (RPRX.O) has a current P/FCF of 5.63. The 5-year average P/FCF is 6.58. The thresholds are as follows: Strongly Undervalued below 2.97, Undervalued between 2.97 and 4.78, Fairly Valued between 8.39 and 4.78, Overvalued between 8.39 and 10.19, and Strongly Overvalued above 10.19. The current Forward P/FCF of 5.63 falls within the Historic Trend Line -Fairly Valued range.
Royalty Pharma PLC (RPRX.O) has a current Price-to-Book (P/B) ratio of 2.66. Compared to its 3-year average P/B ratio of 2.20 , the current P/B ratio is approximately 20.63% higher. Relative to its 5-year average P/B ratio of 2.59, the current P/B ratio is about 2.43% higher. Royalty Pharma PLC (RPRX.O) has a Forward Free Cash Flow (FCF) yield of approximately 14.17%. Compared to its 3-year average FCF yield of 19.37%, the current FCF yield is approximately -26.83% lower. Relative to its 5-year average FCF yield of 16.28% , the current FCF yield is about -12.97% lower.
2.66
P/B
Median3y
2.20
Median5y
2.59
14.17
FCF Yield
Median3y
19.37
Median5y
16.28
Competitors Valuation Multiple
The average P/S ratio for RPRX.O's competitors is 322.97, providing a benchmark for relative valuation. Royalty Pharma PLC Corp (RPRX.O) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RPRX.O increased by 56.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 11.47 to 22.68.
The secondary factor is the Revenue Growth, contributed 7.90%to the performance.
Overall, the performance of RPRX.O in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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