Historical Valuation
Royalty Pharma PLC (RPRX) is now in the Fair zone, suggesting that its current forward PE ratio of 7.74 is considered Fairly compared with the five-year average of 9.76. The fair price of Royalty Pharma PLC (RPRX) is between 37.68 to 63.20 according to relative valuation methord.
Relative Value
Fair Zone
37.68-63.20
Current Price：40.17
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Royalty Pharma PLC (RPRX) has a current Price-to-Book (P/B) ratio of 2.60. Compared to its 3-year average P/B ratio of 2.19 , the current P/B ratio is approximately 18.67% higher. Relative to its 5-year average P/B ratio of 2.57, the current P/B ratio is about 1.09% higher. Royalty Pharma PLC (RPRX) has a Forward Free Cash Flow (FCF) yield of approximately 14.49%. Compared to its 3-year average FCF yield of 19.47%, the current FCF yield is approximately -25.60% lower. Relative to its 5-year average FCF yield of 16.36% , the current FCF yield is about -11.42% lower.
P/B
Median3y
2.19
Median5y
2.57
FCF Yield
Median3y
19.47
Median5y
16.36
Competitors Valuation Multiple
AI Analysis for RPRX
The average P/S ratio for RPRX competitors is 327.79, providing a benchmark for relative valuation. Royalty Pharma PLC Corp (RPRX.O) exhibits a P/S ratio of 4.92, which is -98.5% above the industry average. Given its robust revenue growth of 7.90%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for RPRX
1Y
3Y
5Y
Market capitalization of RPRX increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of RPRX in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is RPRX currently overvalued or undervalued?
Royalty Pharma PLC (RPRX) is now in the Fair zone, suggesting that its current forward PE ratio of 7.74 is considered Fairly compared with the five-year average of 9.76. The fair price of Royalty Pharma PLC (RPRX) is between 37.68 to 63.20 according to relative valuation methord.
What is Royalty Pharma PLC (RPRX) fair value?
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. The fair price of Royalty Pharma PLC (RPRX) is between 37.68 to 63.20 according to relative valuation methord.
How does RPRX's valuation metrics compare to the industry average?
The average P/S ratio for RPRX's competitors is 327.79, providing a benchmark for relative valuation. Royalty Pharma PLC Corp (RPRX) exhibits a P/S ratio of 4.92, which is -98.50% above the industry average. Given its robust revenue growth of 7.90%, this premium appears unsustainable.
What is the current P/B ratio for Royalty Pharma PLC (RPRX) as of Jan 10 2026?
As of Jan 10 2026, Royalty Pharma PLC (RPRX) has a P/B ratio of 2.60. This indicates that the market values RPRX at 2.60 times its book value.
What is the current FCF Yield for Royalty Pharma PLC (RPRX) as of Jan 10 2026?
As of Jan 10 2026, Royalty Pharma PLC (RPRX) has a FCF Yield of 14.49%. This means that for every dollar of Royalty Pharma PLC’s market capitalization, the company generates 14.49 cents in free cash flow.
What is the current Forward P/E ratio for Royalty Pharma PLC (RPRX) as of Jan 10 2026?
As of Jan 10 2026, Royalty Pharma PLC (RPRX) has a Forward P/E ratio of 7.74. This means the market is willing to pay $7.74 for every dollar of Royalty Pharma PLC’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Royalty Pharma PLC (RPRX) as of Jan 10 2026?
As of Jan 10 2026, Royalty Pharma PLC (RPRX) has a Forward P/S ratio of 4.92. This means the market is valuing RPRX at $4.92 for every dollar of expected revenue over the next 12 months.