We’ve recently updated our valuation analysis.

Royalty Pharma Valuation

Is RPRX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

[object Object] Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RPRX?

Other financial metrics that can be useful for relative valuation.

RPRX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12.8x
Enterprise Value/EBITDA30.2x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does RPRX's PE Ratio compare to its peers?

The above table shows the PE ratio for RPRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20x
VTRS Viatris
16.9x18.2%US$13.5b
ZTS Zoetis
35.5x8.8%US$73.4b
CTLT Catalent
21.8x14.8%US$9.4b
OGN Organon
6.7x7.8%US$6.8b
RPRX Royalty Pharma
38.2x59.7%US$26.6b

Price-To-Earnings vs Peers: RPRX is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the peer average (20x).


Price to Earnings Ratio vs Industry

How does RPRX's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.5%
n/an/an/a

Price-To-Earnings vs Industry: RPRX is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the US Pharmaceuticals industry average (17.2x)


Price to Earnings Ratio vs Fair Ratio

What is RPRX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RPRX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.4x
Fair PE Ratio43.4x

Price-To-Earnings vs Fair Ratio: RPRX is good value based on its Price-To-Earnings Ratio (37.4x) compared to the estimated Fair Price-To-Earnings Ratio (43.4x).


Share Price vs Fair Value

What is the Fair Price of RPRX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RPRX ($43.01) is trading below our estimate of fair value ($91.28)

Significantly Below Fair Value: RPRX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RPRX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$43.01
US$54.35
+26.4%
6.1%US$60.00US$49.80n/a11
Nov ’23US$42.22
US$54.31
+28.6%
6.6%US$60.00US$49.40n/a11
Oct ’23US$40.18
US$53.95
+34.3%
6.6%US$60.00US$49.40n/a11
Sep ’23US$41.97
US$53.95
+28.5%
6.6%US$60.00US$49.40n/a11
Aug ’23US$42.77
US$53.58
+25.3%
7.2%US$60.00US$48.00n/a11
Jul ’23US$42.74
US$52.44
+22.7%
7.4%US$58.00US$47.00n/a9
Jun ’23US$40.69
US$52.50
+29.0%
6.7%US$58.00US$48.00n/a10
May ’23US$42.58
US$51.78
+21.6%
5.8%US$56.00US$48.00n/a9
Apr ’23US$39.36
US$51.00
+29.6%
6.1%US$56.00US$46.00n/a8
Mar ’23US$38.79
US$51.00
+31.5%
6.1%US$56.00US$46.00n/a8
Feb ’23US$40.56
US$51.50
+27.0%
6.6%US$56.00US$46.00n/a8
Jan ’23US$39.85
US$51.50
+29.2%
6.6%US$56.00US$46.00n/a8
Dec ’22US$38.77
US$51.25
+32.2%
6.7%US$56.00US$46.00US$44.048
Nov ’22US$39.73
US$51.25
+29.0%
6.7%US$56.00US$46.00US$42.228
Oct ’22US$36.23
US$51.25
+41.5%
6.7%US$56.00US$46.00US$40.188
Sep ’22US$38.90
US$51.33
+32.0%
6.3%US$56.00US$46.00US$41.979
Aug ’22US$38.20
US$52.11
+36.4%
4.6%US$56.00US$50.00US$42.779
Jul ’22US$42.22
US$52.38
+24.1%
4.6%US$56.00US$50.00US$42.748
Jun ’22US$40.28
US$52.38
+30.0%
4.6%US$56.00US$50.00US$40.698
May ’22US$44.00
US$52.25
+18.8%
4.9%US$56.00US$49.00US$42.588
Apr ’22US$43.01
US$52.00
+20.9%
5.6%US$56.00US$47.00US$39.368
Mar ’22US$48.03
US$51.88
+8.0%
5.7%US$56.00US$47.00US$38.798
Feb ’22US$46.73
US$51.88
+11.0%
5.7%US$56.00US$47.00US$40.568
Jan ’22US$50.05
US$51.88
+3.6%
5.7%US$56.00US$47.00US$39.858
Dec ’21US$42.78
US$51.88
+21.3%
5.7%US$56.00US$47.00US$38.778

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies