RPRX Valuation

Royalty Pharma PLC

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36.320

+0.01(0.028%)1D

Overview
Forecast
Valuation
Earnings

RPRX Relative Valuation

RPRX'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 is overvalued; if below, it's undervalued.

Historical Valuation

Royalty Pharma PLC (RPRX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 7.30 is considered Undervalued compared with the five-year average of 10.40. The fair price of Royalty Pharma PLC (RPRX) is between 39.63 to 66.72 according to relative valuation methord. Compared to the current price of 36.31 USD , Royalty Pharma PLC is Undervalued By 8.37%.

Relative Value

Fair Zone

39.63-66.72

Current Price：36.31

8.37%

Undervalued

7.19

Trailing

Forward

8.96

EV/EBITDA

Royalty Pharma PLC. (RPRX) has a current EV/EBITDA of 8.96. The 5-year average EV/EBITDA is 10.58. The thresholds are as follows: Strongly Undervalued below 6.21, Undervalued between 6.21 and 8.39, Fairly Valued between 12.77 and 8.39, Overvalued between 12.77 and 14.96, and Strongly Overvalued above 14.96. The current Forward EV/EBITDA of 8.96 falls within the Historic Trend Line -Fairly Valued range.

9.60

EV/EBIT

Royalty Pharma PLC. (RPRX) has a current EV/EBIT of 9.60. The 5-year average EV/EBIT is 11.26. The thresholds are as follows: Strongly Undervalued below 6.80, Undervalued between 6.80 and 9.03, Fairly Valued between 13.50 and 9.03, Overvalued between 13.50 and 15.73, and Strongly Overvalued above 15.73. The current Forward EV/EBIT of 9.60 falls within the Historic Trend Line -Fairly Valued range.

5.08

Royalty Pharma PLC. (RPRX) has a current PS of 5.08. The 5-year average PS is 6.08. The thresholds are as follows: Strongly Undervalued below 3.27, Undervalued between 3.27 and 4.68, Fairly Valued between 7.49 and 4.68, Overvalued between 7.49 and 8.90, and Strongly Overvalued above 8.90. The current Forward PS of 5.08 falls within the Historic Trend Line -Fairly Valued range.

5.56

P/OCF

Royalty Pharma PLC. (RPRX) has a current P/OCF of 5.56. The 5-year average P/OCF is 6.41. The thresholds are as follows: Strongly Undervalued below 3.11, Undervalued between 3.11 and 4.76, Fairly Valued between 8.06 and 4.76, Overvalued between 8.06 and 9.71, and Strongly Overvalued above 9.71. The current Forward P/OCF of 5.56 falls within the Historic Trend Line -Fairly Valued range.

5.38

P/FCF

Royalty Pharma PLC. (RPRX) has a current P/FCF of 5.38. The 5-year average P/FCF is 6.83. The thresholds are as follows: Strongly Undervalued below 2.96, Undervalued between 2.96 and 4.90, Fairly Valued between 8.76 and 4.90, Overvalued between 8.76 and 10.70, and Strongly Overvalued above 10.70. The current Forward P/FCF of 5.38 falls within the Historic Trend Line -Fairly Valued range.

Royalty Pharma PLC (RPRX) has a current Price-to-Book (P/B) ratio of 2.51. Compared to its 3-year average P/B ratio of 2.26 , the current P/B ratio is approximately 11.30% higher. Relative to its 5-year average P/B ratio of 2.65, the current P/B ratio is about -5.28% higher. Royalty Pharma PLC (RPRX) has a Forward Free Cash Flow (FCF) yield of approximately 15.46%. Compared to its 3-year average FCF yield of 18.96%, the current FCF yield is approximately -18.44% lower. Relative to its 5-year average FCF yield of 16.14% , the current FCF yield is about -4.21% lower.

2.47

P/B

Median3y

2.26

Median5y

2.65

15.09

FCF Yield

Median3y

18.96

Median5y

16.14

Competitors Valuation Multiple

The average P/S ratio for RPRX's competitors is 10.12, providing a benchmark for relative valuation. Royalty Pharma PLC Corp (RPRX) exhibits a P/S ratio of 5.08, which is -49.85% above the industry average. Given its robust revenue growth of 7.71%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

United Therapeutics Corp

4.28

11.71%

14.12B

Performance Decomposition

Market capitalization of RPRX increased by 26.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.87 to 15.62.

The secondary factor is the Revenue Growth, contributed 7.71%to the performance.

Overall, the performance of RPRX in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.71%

537.27M → 578.67M

Revenue Growth

-56.72%

36.18 → 15.66

Margin Expansion

76.00%

8.87 → 15.62

P/E Change

26.99%