Royalty Pharma plc (RPRX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-70.4%

$19.68

vs $66.60 price

Levered DCF

$89.77

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.39

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.58×	13.29×	8.24×	404.09×	26.74×	39.1×	6.71×	11.44×
P/B	2.58×	1.64×	1.93×	3.08×	2.86×	4.03×	2.58×	3.51×
P/S	7.02×	5.03×	5.34×	7.74×	7.22×	9.15×	8.69×	8.78×
EV / EBITDA	15.3×	11.6×	9.66×	53.61×	15.44×	12.88×	7.9×	11.12×
Gross margin	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Operating margin	65.6%	57.1%	63.4%	13.7%	62.5%	75.2%	144.6%	76.0%
Net margin	32.4%	37.9%	48.2%	1.9%	27.1%	45.9%	129.4%	76.8%
Current ratio	0.97×	1.44×	7.9×	2.19×	16.81×	8.76×	2.5×	4.5×
Debt / equity	1.38×	1.1×	0.94×	1.26×	1.23×	1.21×	1.02×	1.45×
Interest coverage	5.07×	5.73×	7.97×	1.63×	8.61×	10.16×	9.77×	4.87×
Dividend yield	2.3%	3.3%	2.8%	1.9%	1.7%	2.0%	4.7%	5.2%
Payout ratio	49.1%	43.8%	31.6%	778.2%	46.0%	40.8%	31.5%	59.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.9%	12.4%	17.4%	0.8%	10.7%	20.2%	38.5%	30.7%
Return on invested capital	8.9%	7.2%	9.2%	1.8%	8.2%	10.2%	21.2%	12.3%
Return on assets	3.9%	4.7%	6.9%	0.3%	3.5%	6.1%	18.9%	12.1%
Free cash flow yield	14.9%	24.3%	23.8%	12.4%	12.2%	10.5%	10.6%	10.3%
Earnings yield	4.6%	7.6%	9.0%	0.2%	3.7%	5.0%	14.9%	8.7%
Enterprise value	$25B	$18.1B	$18.2B	$22.7B	$22.1B	$24.2B	$21.8B	$20.4B
Net debt / EBITDA	5.09×	4.29×	3×	12.76×	3.88×	2.55×	2.18×	2.51×
Cash conversion cycle (days)	136	4	3	6	11	7	8	40