Royalty Pharma plc

NasdaqGS:RPRX Stock Report

Market Cap: US$15.3b

Royalty Pharma Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 ($26.22) is trading below our estimate of fair value ($172.29)

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

Key Valuation Metric

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

Key metric: As RPRX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RPRX. This is calculated by dividing RPRX's market cap by their current earnings.
What is RPRX's PE Ratio?
PE Ratio10.2x
EarningsUS$1.15b
Market CapUS$15.32b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.7x
ELAN Elanco Animal Health
32.4x2.7%US$6.6b
JAZZ Jazz Pharmaceuticals
15.6x16.7%US$7.1b
OGN Organon
2.9x-7.1%US$3.8b
PBH Prestige Consumer Healthcare
19.8x5.3%US$4.1b
RPRX Royalty Pharma
10.2x6.3%US$15.3b

Price-To-Earnings vs Peers: RPRX is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

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

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
OGN Organon
2.9x-7.1%US$3.76b
NDOI Endo
0.6xn/aUS$1.91b
PROC Procaps Group
1.2xn/aUS$59.68m
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$9.59m
RPRX 10.2xIndustry Avg. 20.1xNo. of Companies12PE01224364860+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RPRX is good value based on its Price-To-Earnings Ratio (10.2x) compared to the US Pharmaceuticals industry average (19.9x).

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 Ratio10.2x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: RPRX is good value based on its Price-To-Earnings Ratio (10.2x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

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$26.22
US$41.53
+58.4%
17.8%US$51.00US$28.00n/a10
Nov ’25US$27.10
US$41.43
+52.9%
17.9%US$51.00US$28.00n/a10
Oct ’25US$28.38
US$44.75
+57.7%
20.1%US$60.00US$28.00n/a8
Sep ’25US$29.03
US$44.75
+54.2%
20.1%US$60.00US$28.00n/a8
Aug ’25US$28.49
US$45.38
+59.3%
20.5%US$60.00US$28.00n/a8
Jul ’25US$26.19
US$45.00
+71.8%
20.2%US$60.00US$28.00n/a8
Jun ’25US$27.41
US$45.75
+66.9%
15.7%US$60.00US$37.00n/a8
May ’25US$28.07
US$45.40
+61.7%
15.4%US$60.00US$37.00n/a9
Apr ’25US$29.90
US$45.40
+51.8%
15.0%US$60.00US$37.00n/a9
Mar ’25US$29.93
US$45.40
+51.7%
15.0%US$60.00US$37.00n/a9
Feb ’25US$28.68
US$46.33
+61.6%
16.3%US$60.00US$37.00n/a9
Jan ’25US$28.09
US$46.50
+65.5%
15.7%US$60.00US$37.00n/a8
Dec ’24US$27.35
US$47.88
+75.0%
16.9%US$60.00US$37.00n/a8
Nov ’24US$27.23
US$48.50
+78.1%
14.5%US$60.00US$40.00US$27.108
Oct ’24US$27.14
US$49.44
+82.2%
14.8%US$60.00US$40.00US$28.389
Sep ’24US$30.27
US$49.64
+64.0%
14.5%US$60.00US$40.00US$29.039
Aug ’24US$30.90
US$50.42
+63.2%
12.2%US$60.00US$42.00US$28.499
Jul ’24US$30.74
US$51.58
+67.8%
11.4%US$60.00US$42.00US$26.1910
Jun ’24US$33.17
US$51.58
+55.5%
11.4%US$60.00US$42.00US$27.4110
May ’24US$35.33
US$52.08
+47.4%
11.3%US$60.00US$42.00US$28.0710
Apr ’24US$36.03
US$52.53
+45.8%
8.9%US$60.00US$47.00US$29.909
Mar ’24US$35.62
US$52.53
+47.5%
8.9%US$60.00US$47.00US$29.939
Feb ’24US$38.90
US$53.38
+37.2%
7.5%US$60.00US$47.00US$28.6810
Jan ’24US$39.52
US$54.07
+36.8%
6.4%US$60.00US$49.80US$28.0911
Dec ’23US$44.04
US$54.35
+23.4%
6.1%US$60.00US$49.80US$27.3511
Nov ’23US$42.22
US$54.31
+28.6%
6.6%US$60.00US$49.40US$27.2311

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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