Royalty Pharma plc
We are the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies.
$60.96
+$1.34 (+2.25%)
EOD Oct 16, 2026
66.31% operating margin is above average. ROIC at 6.73%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue declined 0.5% YoY. The question is whether this is cyclical or a structural shift.
At 33x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
32.6x earnings. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.53B
▼ -0.5% YoY
Net Income (TTM)
$812M
▼ -10.2% YoY
Op. Margin
59.70%
▲ +11.6pp YoY
ROIC
6.38%
▲ +0.7pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$2.98B
▼ -10.1% YoY
Net Debt
$8.12B
Cash & Equiv.
$837M
5Y CAGR: +3.6%
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SourceComputed from the 10-Q filed 5 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 3 Oct 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Royalty Pharma (RPRX) overvalued?
At a P/E of 32.6, Royalty Pharma (RPRX)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Royalty Pharma scores 19/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is Royalty Pharma a high-quality business?+
Royalty Pharma scores 19 out of 100 on Intrinsiqq's quality score, a weighted blend of 6 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 59.7% operating margin and a 6.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Royalty Pharma a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh RPRX's valuation and scores 19/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Pharmaceutical Preparations
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.