Royalty Pharma plc (RPRX) Financial Ratios
9 years of historical data (2017–2025) · Healthcare · Biotechnology
EV/EBITDA
↑
9.89
↓-63% vs avg
5yr avg: 26.63
30Y Low12.0·High72.6
P/FCF
↑
2.85
↓-61% vs avg
5yr avg: 7.23
30Y Low5.5·High9.5
P/B Ratio
↑
2.73
↑+55% vs avg
5yr avg: 1.76
30Y Low1.5·High2.2
ROE
↑
7.7%
↓+12% vs avg
5yr avg: 6.8%
30Y Low0%·High44%
Debt/EBITDA
↑
5.74
↓-31% vs avg
5yr avg: 8.30
30Y Low2.4·High22.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Royalty Pharma plc trades at 26.6x earnings, 72% below its 5-year average of 95.4x, sitting at the 80th percentile of its historical range. Compared to the Healthcare sector median P/E of 23.3x, the stock trades at a premium of 14%. On a free-cash-flow basis, the stock trades at 2.8x P/FCF, 61% below the 5-year average of 7.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.1B | $21.8B | $15.2B | $16.9B | $17.3B | $16.5B | $19.4B | — | — | — |
| Enterprise Value | $15.4B | $30.1B | $21.8B | $22.6B | $22.7B | $22.1B | $24.2B | — | — | — |
| P/E Ratio → | 26.55 | 21.71 | 13.34 | 11.09 | 404.09 | 26.67 | 19.27 | — | — | — |
| P/S Ratio | 2.98 | 9.17 | 6.69 | 7.19 | 7.74 | 7.22 | 9.15 | — | — | — |
| P/B Ratio | 2.73 | 2.23 | 1.47 | 1.68 | 1.82 | 1.61 | 1.96 | — | — | — |
| P/FCF | 2.85 | 8.76 | 5.47 | 5.67 | 8.07 | 8.19 | 9.55 | — | — | — |
| P/OCF | 2.85 | 8.76 | 5.47 | 5.67 | 8.07 | 8.19 | 9.55 | — | — | — |
P/E links to full P/E history page with 30-year chart
EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Royalty Pharma plc's enterprise value stands at 9.9x EBITDA, 63% below its 5-year average of 26.6x. The Healthcare sector median is 13.6x, placing the stock at a 27% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.67 | 9.65 | 9.60 | 10.15 | 9.65 | 11.42 | — | — | — |
| EV / EBITDA | 9.89 | 19.33 | 14.03 | 11.97 | 72.63 | 15.19 | 14.97 | — | — | — |
| EV / EBIT | 9.89 | — | 14.03 | 11.97 | 54.34 | 15.69 | 14.59 | — | — | — |
| EV / FCF | — | 12.11 | 7.89 | 7.56 | 10.59 | 10.95 | 11.91 | — | — | — |
Profitability
Margins and return-on-capital ratios measuring operating efficiency
Royalty Pharma plc earns an operating margin of 65.6%. Operating margins have expanded from 63.4% to 65.6% over the past 3 years, signaling improving operational efficiency. ROE of 7.7% is modest. ROIC of 6.7% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | — | — | 100.0% | 100.0% | 100.0% | 100.0% | 89.1% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 65.6% | 65.6% | 57.1% | 63.4% | 13.7% | 62.5% | 75.2% | 144.6% | 76.0% | 58.8% |
| Net Profit Margin | 32.4% | 32.4% | 37.9% | 48.2% | 1.9% | 27.1% | 45.9% | 129.4% | 76.8% | 75.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.7% | 7.7% | 8.4% | 11.6% | 0.4% | 6.2% | 12.2% | 43.9% | 30.6% | 27.1% |
| ROA | 4.1% | 4.1% | 5.0% | 6.8% | 0.2% | 3.7% | 6.8% | 19.7% | 12.1% | 10.6% |
| ROIC | 6.7% | 6.7% | 5.9% | 7.3% | 1.5% | 7.0% | 8.9% | 18.5% | 10.8% | — |
| ROCE | 8.7% | 8.7% | 7.8% | 9.4% | 1.9% | 8.7% | 11.5% | 22.9% | 12.5% | 8.6% |
Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Royalty Pharma plc carries a Debt/EBITDA ratio of 5.7x, which is highly leveraged (89% above the sector average of 3.0x). Net debt stands at $8.3B ($9.0B total debt minus $619M cash). Interest coverage of 5.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.91 | 0.91 | 0.74 | 0.61 | 0.75 | 0.69 | 0.59 | 1.02 | 1.43 | 1.52 |
| Debt / EBITDA | 5.74 | 5.74 | 4.89 | 3.25 | 22.76 | 4.88 | 3.59 | 2.36 | 4.66 | 6.99 |
| Net Debt / Equity | — | 0.85 | 0.65 | 0.56 | 0.57 | 0.54 | 0.49 | 0.98 | 1.01 | 1.22 |
| Net Debt / EBITDA | 5.34 | 5.34 | 4.29 | 3.00 | 17.28 | 3.82 | 2.97 | 2.26 | 3.29 | 5.57 |
| Debt / FCF | — | 3.35 | 2.41 | 1.89 | 2.52 | 2.75 | 2.36 | 3.59 | 2.84 | 3.82 |
| Interest Coverage | 5.07 | 5.07 | 5.73 | 7.97 | 1.63 | 8.61 | 10.16 | 9.77 | 4.87 | 3.80 |
Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.97x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 7.90x to 0.97x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.97 | 0.97 | 1.44 | 7.90 | 2.19 | 16.81 | 8.76 | 2.50 | 4.50 | 7.69 |
| Quick Ratio | 0.97 | 0.97 | 1.44 | 7.90 | 2.19 | 16.81 | 8.76 | 2.50 | 4.50 | 7.69 |
| Cash Ratio | 1.00 | 1.00 | 1.41 | 7.65 | 2.08 | 16.37 | 8.60 | 2.38 | 4.11 | 3.60 |
| Asset Turnover | — | 0.12 | 0.12 | 0.14 | 0.13 | 0.13 | 0.13 | 0.15 | 0.16 | 0.14 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | 4.35 | 3.47 | 5.97 | 10.89 | 6.74 | 7.80 | 40.39 | — |
Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Royalty Pharma plc returns 1.4% to shareholders annually primarily through dividends. The earnings yield of 3.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.7% | 2.5% | 2.1% | 1.9% | 1.7% | 2.0% | — | — | — |
| Payout Ratio | — | — | 43.8% | 31.6% | 778.2% | 46.0% | 40.8% | 31.5% | 59.1% | 60.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.6% | 7.5% | 9.0% | 0.2% | 3.7% | 5.2% | — | — | — |
| FCF Yield | 35.1% | 11.4% | 18.3% | 17.6% | 12.4% | 12.2% | 10.5% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 1.5% | 1.8% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.4% | 1.7% | 4.0% | 3.9% | 1.9% | 1.7% | 2.0% | — | — | — |
| Shares Outstanding | — | $564M | $594M | $603M | $438M | $415M | $388M | $354M | $354M | $354M |
Peer Comparison
Compare RPRX with 7 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RPRXYou | $7B | 26.6 | 9.9 | 2.8 | — | 65.6% | 7.7% | 6.7% | 5.7 |
 LGND | $4B | -918.6 | 309.3 | 51.3 | 93.4% | -13.5% | -0.5% | -2.3% | 0.6 |
 INVA | $2B | 6.7 | 5.4 | 8.5 | 72.3% | 38.5% | 29.1% | 16.8% | — |
 BTX | $765M | 38.6 | 21.4 | 2.8 | 100.0% | 87.7% | 1.9% | 1.4% | — |
 XOMAP | $321M | -15.8 | — | — | 99.3% | -140.3% | -16.2% | -37.6% | — |
 XOMA | $305M | -15.5 | — | — | 99.3% | -140.3% | -16.2% | -37.6% | — |
 CBUS | $106M | -0.3 | — | — | 100.0% | -6062.8% | -115.3% | -86.2% | — |
 CDT | $30M | -0.0 | — | — | — | — | — | — | — |
| Healthcare Median | — | 23.3 | 13.6 | 18.1 | 66.0% | -6.6% | -36.9% | -13.6% | 3.0 |
Peers based on L4 peer group classification. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 9 years · Updated daily
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Start ComparisonFrequently Asked Questions
What is Royalty Pharma plc's P/E ratio?
Royalty Pharma plc's current P/E ratio is 26.6x. The historical average is 18.4x. This places it at the 80th percentile of its historical range.
What is Royalty Pharma plc's EV/EBITDA?
Royalty Pharma plc's current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.7x.
What is Royalty Pharma plc's ROE?
Royalty Pharma plc's return on equity (ROE) is 7.7%. The historical average is 16.4%.
Is RPRX stock overvalued?
Based on historical data, Royalty Pharma plc is trading at a P/E of 26.6x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Royalty Pharma plc's dividend yield?
Royalty Pharma plc's current dividend yield is 1.42%.
What are Royalty Pharma plc's profit margins?
Royalty Pharma plc has 65.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Royalty Pharma plc have?
Royalty Pharma plc's Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.