Latest Ratios: P/E Ratio 32.0x · EV/EBITDA 21.7x · ROE 7.7%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.6B | $21.6B | $15.2B | $16.9B | $22.3B | $16.5B | $19.4B | — | — | — |
| Enterprise Value | $33.9B | $30.0B | $21.8B | $22.6B | $27.7B | $22.1B | $24.2B | — | — | — |
| P/E Ratio → | 32.03 | 21.47 | 13.36 | 11.10 | 395.20 | 26.74 | 39.10 | — | — | — |
| P/S Ratio | 10.75 | 9.09 | 6.69 | 7.19 | 9.98 | 7.22 | 9.15 | — | — | — |
| P/B Ratio | 3.32 | 2.23 | 1.47 | 1.68 | 2.34 | 1.61 | 1.96 | — | — | — |
| P/FCF | 10.26 | 8.68 | 5.47 | 5.67 | 10.41 | 8.19 | 9.55 | — | — | — |
| P/OCF | 10.26 | 8.68 | 5.47 | 5.67 | 10.41 | 8.19 | 9.55 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.60 | 9.65 | 9.60 | 12.40 | 9.65 | 11.42 | — | — | — |
| EV / EBITDA | 21.68 | 19.16 | 14.03 | 11.97 | 88.67 | 15.19 | 14.97 | — | — | — |
| EV / EBIT | 21.73 | 18.36 | 14.03 | 11.97 | 66.34 | 15.69 | 13.04 | — | — | — |
| EV / FCF | — | 12.03 | 7.89 | 7.56 | 12.93 | 10.95 | 11.91 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% | 100.0% | 100.0% | 100.0% | 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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.92 | 0.92 | 0.74 | 0.61 | 0.75 | 0.69 | 0.59 | 1.02 | 1.43 | 1.52 |
| Debt / EBITDA | 5.73 | 5.73 | 4.89 | 3.25 | 22.76 | 4.88 | 3.59 | 2.36 | 4.66 | 6.99 |
| Net Debt / Equity | — | 0.86 | 0.65 | 0.56 | 0.57 | 0.54 | 0.49 | 0.98 | 1.01 | 1.22 |
| Net Debt / EBITDA | 5.33 | 5.33 | 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 | 5.30 | 5.30 | 6.90 | 10.08 | 2.22 | 8.47 | 11.84 | 10.16 | 6.42 | 6.43 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | 135.63 | 4.35 | 3.47 | 5.97 | 10.89 | 6.74 | 7.80 | 40.39 | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 1.2% | 1.7% | 2.5% | 2.1% | 1.5% | 1.7% | 2.0% | — | — | — |
| Payout Ratio | 49.1% | 49.1% | 43.8% | 31.6% | 778.2% | 46.0% | 40.8% | 31.5% | 59.1% | 60.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 4.7% | 7.5% | 9.0% | 0.3% | 3.7% | 2.6% | — | — | — |
| FCF Yield | 9.7% | 11.5% | 18.3% | 17.6% | 9.6% | 12.2% | 10.5% | — | — | — |
| Buyback Yield | 4.8% | 5.7% | 1.5% | 1.8% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.0% | 7.4% | 4.0% | 3.9% | 1.5% | 1.7% | 2.0% | — | — | — |
| Shares Outstanding | — | $560M | $594M | $603M | $565M | $415M | $388M | $354M | $354M | $354M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying RPRX stock.
Royalty Pharma plc's current P/E ratio is 32.0x. The historical average is 22.4x. This places it at the 80th percentile of its historical range.
Royalty Pharma plc's current EV/EBITDA is 21.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 27.3x.
Royalty Pharma plc's return on equity (ROE) is 7.7%. The historical average is 16.4%.
Based on historical data, Royalty Pharma plc is trading at a P/E of 32.0x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Royalty Pharma plc's current dividend yield is 1.17% with a payout ratio of 49.1%.
Royalty Pharma plc has 100.0% gross margin and 65.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Royalty Pharma plc's Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Revenue concentration and volatility
Metrics are mathematically derived from official filings.
Premium Pricing for Royalty Stability
RPRX trades at 32.2x trailing earnings but only 11.0x forward earnings, implying the market expects substantial earnings growth. According to reported figures, the forward EV/EBITDA of 16.4x is below the trailing 21.8x, suggesting a normalization of margins.
The steep discount between trailing and forward multiples likely reflects the market's expectation that recent margin volatility will subside, with earnings power normalizing. Compared to royalty peers like WPM (40.5x P/E) and FNV (41.1x P/E), RPRX appears cheaper on a forward basis, but its higher leverage and revenue concentration warrant a discount. The PEG of 4.56 is elevated, indicating that the current growth rate may not justify the valuation unless the forward estimates are conservative.
Margin Volatility Masks Core Stability
Gross margins have been near 100% for most quarters, but 2026Q2 dropped to 60.2%, as per the income statement, reflecting atypical COGS. Operating margins swung from 130.2% in 2024Q3 to -13.0% in 2024Q1, indicating significant non-cash or non-operating items distorting profitability.
The near-100% gross margin in most quarters is consistent with a royalty model, but the 2026Q2 collapse to 60.2% suggests a one-time cost or revenue reclassification that warrants investigation. Net margins have been highly variable, ranging from 0.8% to 96.3%, driven by non-operating gains/losses. Investors should focus on cash flow margins, which have been consistently strong (e.g., 120.6% in 2026Q1), as they better reflect the underlying economics of royalty collections.
Low ROIC Reflects Heavy Intangible Base
ROIC has remained below 3.5% over the past ten quarters, with 2026Q2 at 0.6%, according to reported figures. This is despite high gross margins, indicating that the invested capital base, largely intangible royalty assets, is not generating commensurate returns.
The persistently low ROIC (0.6% in 2026Q2) compared to peers like WPM (17.4%) and FNV (16.6%) suggests that RPRX's acquisitions are not yet yielding returns at the same level. However, the company's asset-light model means that ROIC is heavily influenced by the timing of royalty receipts and impairments. The recent increase in debt to fund acquisitions may further depress ROIC in the near term, but if royalty streams grow as expected, returns could improve.
Working Capital Swings Distort Efficiency
Asset turnover has been stable at 0.03x, reflecting the asset-heavy balance sheet from royalty acquisitions, as per reported data. DSO has ranged from 4 to 131 days, and DPO has been highly volatile, with a 1,725-day outlier in 2026Q1, indicating timing mismatches in royalty collections and payments.
The extremely low asset turnover (0.03x) is typical for a royalty company with a large intangible asset base, but it means that efficiency gains must come from working capital management. The wide swings in DSO (from 4 to 131 days) and DPO (from 10 to 1,725 days) suggest that cash flow timing is unpredictable, which could complicate liquidity planning. The negative CCC in some quarters (e.g., 2026Q2) indicates that the company is collecting cash before paying suppliers, but the volatility is a concern.
Debt Burden Rising with Coverage Thin
D/E has climbed from 0.62 in 2024Q1 to 0.92 in 2026Q2, while D/EBITDA spiked to 51.2x in 2026Q2, as per balance sheet data. Interest coverage fell to 1.87x in 2026Q2, down from 13.1x in 2024Q3, indicating a significant deterioration in debt service capacity.
The sharp increase in leverage, with debt reaching $9.0B, has outpaced EBITDA growth, causing D/EBITDA to balloon to 51.2x in 2026Q2. Interest coverage of 1.87x is dangerously low, suggesting that a modest decline in royalty income could strain debt service. While the company has historically maintained adequate liquidity, the trend is concerning and warrants close monitoring of refinancing risk, especially if interest rates remain elevated.
Liquidity Buffer Thin but Manageable
The current ratio has fluctuated between 0.97 and 12.52 over the past ten quarters, with 2026Q2 at 1.29, as per reported figures. Quick ratio equals current ratio, indicating no inventory dependence, but the low ratio suggests limited short-term cushion.
The current ratio of 1.29 in 2026Q2 is below the 2.0 threshold often considered healthy, but the company's cash flow generation has been strong, with FCF margins exceeding 100% in several quarters. However, the volatility in working capital and the high leverage mean that liquidity could be strained if royalty receipts are delayed. The company's ability to access capital markets is not guaranteed, so the thin liquidity buffer is a risk factor.
Leverage Gap vs. Royalty Peers
RPRX's D/E of 0.92 is significantly higher than peers like WPM (0.00), FNV (0.00), and RGLD (0.13), as per peer data. Its ROIC of 0.6% in 2026Q2 is far below the 9-17% range of its royalty peers, indicating a structural disadvantage.
The higher leverage and lower returns compared to precious metal royalty companies suggest that RPRX's business model, focused on biopharma royalties, carries more risk and requires more capital. The peer group's near-zero debt and higher ROIC reflect their more mature, diversified royalty streams. RPRX's higher P/E (32.2x) relative to OR (30.4x) may be justified by its growth prospects, but the leverage gap is a key differentiator that investors should monitor.
Misapplied Metric: P/E on Volatile Earnings
The P/E ratio is commonly misapplied to RPRX because its net income is heavily distorted by non-cash items and one-time gains/losses, as seen in the wide swings in net margin. According to reported figures, trailing P/E of 32.2x is misleading; forward P/E of 11.0x is more indicative of normalized earnings.
For a royalty company, earnings before interest, taxes, depreciation, and amortization (EBITDA) or cash flow from operations are more reliable metrics, as they smooth out non-cash adjustments. The P/E ratio fails to capture the stability of royalty cash flows, which are often contracted and predictable. Investors should use EV/EBITDA or price-to-cash flow multiples, which better reflect the company's ability to generate cash to service debt and pay dividends. The forward EV/EBITDA of 16.4x is more meaningful than the trailing P/E, but even that may be distorted by the recent margin volatility.