# Royalty Pharma plc (RPRX) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Healthcare / Biotechnology. Price $66.40, market value $38.4 billion.

## Valuation
- **P/E (trailing): 35.3×** (5-yr avg 85.9×, 3-yr avg 14.9×). Royalty Pharma plc trades at 35.3× trailing earnings, well below its own five-year average of 85.9×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 11.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 15.1×**. Each dollar of revenue is priced at 15.1×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 4.3×**. The shares trade at 4.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 30.8×**. Enterprise value is 30.8× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Earnings yield: 2.8%**. The inverse of the P/E: 2.8% of the price is earned each year.

## Profitability
- **Operating margin: 59.6%**. 59.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 32.4%**. 32.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.9%**. 7.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.6%**. Return on all capital, debt included, is 6.6%.
- **Return on assets: 4.1%**. Each dollar of assets produces 4.1% of profit.

## Growth
- **Revenue growth (1 yr): 5.1%** (3-yr 2.1%/yr, 5-yr 2.3%/yr). Revenue grew 5.1% over the last year, against 2.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -6.8%** (3-yr 161.1%/yr, 5-yr 6.2%/yr). Earnings per share fell 6.8%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.92**. Debt is 0.92 times equity, moderate leverage.
- **Net debt / EBITDA: 5.5×**. It would take 5.5 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Current ratio: 2.40** (quick 2.40). Current assets cover the next year's liabilities 2.40 times.
- **Altman Z-score: 3.46**. A Z-score of 3.46 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.42%** ($0.91 per share, trailing). Royalty Pharma plc yields 1.42%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 24.0%/yr** (1-yr 4.8%). The dividend has compounded at 24.0% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 2.3%**. Dividends plus net buybacks return 2.3% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (8 analysts). 8 analysts cover Royalty Pharma plc; the consensus is strong_buy, with an average price target of $65.38 (-2% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 79.9%** (YTD 73.8%, 3-mo 16.4%). The shares are up 79.9% over twelve months including dividends.
- **From 52-week high: -1.9%** (84.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 72**. An RSI of 72 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.19** (volatility 24%). Beta of 0.19 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RPRX · Page: https://foliofundamentals.com/stocks/rprx

Not investment advice.