Royalty Pharma plc (RPRX) Financial Ratios
9 years of historical data (2017–2025) · Healthcare · Biotechnology
EV/EBITDA
↑
19.09
↓-28% vs avg
5yr avg: 26.60
30Y Low12.0·High72.6
P/FCF
↑
8.64
+20% vs avg
5yr avg: 7.22
30Y Low5.5·High9.5
P/B Ratio
↑
2.89
↑+64% vs avg
5yr avg: 1.76
30Y Low1.5·High2.2
ROE
↑
7.7%
↓+12% vs avg
5yr avg: 6.9%
30Y Low0%·High44%
Debt/EBITDA
↑
5.73
↓-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.
RPRX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Royalty Pharma plc trades at 27.9x earnings, 70% below its 5-year average of 93.6x, sitting at the 80th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.3x, the stock trades at a premium of 25%. On a free-cash-flow basis, the stock trades at 8.6x P/FCF, 20% above 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 | $21.5B | $21.6B | $15.2B | $16.9B | $17.3B | $16.5B | $19.4B | — | — | — |
| Enterprise Value | $29.9B | $30.0B | $21.8B | $22.6B | $22.7B | $22.1B | $24.2B | — | — | — |
| P/E Ratio → | 27.89 | 21.47 | 13.36 | 11.10 | 395.20 | 26.74 | 39.10 | — | — | — |
| P/S Ratio | 9.05 | 9.09 | 6.69 | 7.19 | 7.74 | 7.22 | 9.15 | — | — | — |
| P/B Ratio | 2.89 | 2.23 | 1.47 | 1.68 | 1.82 | 1.61 | 1.96 | — | — | — |
| P/FCF | 8.64 | 8.68 | 5.47 | 5.67 | 8.07 | 8.19 | 9.55 | — | — | — |
| P/OCF | 8.64 | 8.68 | 5.47 | 5.67 | 8.07 | 8.19 | 9.55 | — | — | — |
P/E links to full P/E history page with 30-year chart
RPRX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Royalty Pharma plc's enterprise value stands at 19.1x EBITDA, 28% below its 5-year average of 26.6x. The Healthcare sector median is 14.4x, placing the stock at a 33% premium 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 | — | 12.60 | 9.65 | 9.60 | 10.15 | 9.65 | 11.42 | — | — | — |
| EV / EBITDA | 19.09 | 19.16 | 14.03 | 11.97 | 72.63 | 15.19 | 14.97 | — | — | — |
| EV / EBIT | 19.14 | 18.36 | 14.03 | 11.97 | 54.34 | 15.69 | 13.04 | — | — | — |
| EV / FCF | — | 12.03 | 7.89 | 7.56 | 10.59 | 10.95 | 11.91 | — | — | — |
RPRX 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% | 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% |
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% |
RPRX 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 (74% above the sector average of 3.3x). Net debt stands at $8.3B ($9.0B total debt minus $619M cash). Interest coverage of 5.3x 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 | 0.92 | 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 |
RPRX 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 | — | 135.63 | 4.35 | 3.47 | 5.97 | 10.89 | 6.74 | 7.80 | 40.39 | — |
RPRX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Royalty Pharma plc returns 7.1% to shareholders annually — split between a 1.3% dividend yield and 5.7% buyback yield. A payout ratio of 49.1% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 3.6% (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 | 1.3% | 1.7% | 2.5% | 2.1% | 1.9% | 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% |
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 | 3.6% | 4.7% | 7.5% | 9.0% | 0.3% | 3.7% | 2.6% | — | — | — |
| FCF Yield | 11.6% | 11.5% | 18.3% | 17.6% | 12.4% | 12.2% | 10.5% | — | — | — |
| Buyback Yield | 5.7% | 5.7% | 1.5% | 1.8% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 7.1% | 7.4% | 4.0% | 3.9% | 1.9% | 1.7% | 2.0% | — | — | — |
| Shares Outstanding | — | $560M | $594M | $603M | $438M | $415M | $388M | $354M | $354M | $354M |
Peer Comparison
Compare RPRX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RPRXYou | $22B | 27.9 | 19.1 | 8.6 | 100.0% | 65.6% | 7.7% | 6.7% | 5.7 |
 RCUS | $2B | -7.5 | — | — | 96.0% | -156.3% | -63.3% | -64.1% | — |
 OR | $7B | 33.7 | 28.3 | 33.1 | 83.4% | 72.9% | 16.0% | 12.2% | 0.0 |
 WPM | $60B | 40.0 | 30.3 | 104.1 | 72.2% | 68.8% | 18.8% | 17.4% | 0.0 |
 RGLD | $16B | 34.8 | 20.1 | 22.9 | 69.3% | 64.5% | 9.0% | 9.2% | 1.1 |
 FNV | $44B | 38.9 | 26.7 | — | 73.9% | 71.0% | 16.6% | 16.8% | 0.0 |
 XOMA | $490M | 28.3 | 37.5 | 170.6 | 94.3% | 21.8% | 38.2% | 7.4% | 9.2 |
 DRI | $23B | 22.0 | 15.5 | 22.3 | 21.9% | 11.3% | 46.1% | 13.0% | 3.3 |
 EPD | $82B | 14.2 | 12.1 | 27.5 | 13.6% | 13.1% | 19.3% | 8.3% | 3.7 |
 PRAX | $10B | -24.7 | — | — | — | — | -45.8% | -65.0% | — |
 BCAB | $5M | -0.1 | — | — | 100.0% | -2965.3% | — | — | — |
| Healthcare Median | — | 22.3 | 14.4 | 18.5 | 63.9% | -5.2% | -33.7% | -11.2% | 3.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonRPRX — Frequently Asked Questions
Quick answers to the most common questions about buying RPRX stock.
What is Royalty Pharma plc's P/E ratio?
Royalty Pharma plc's current P/E ratio is 27.9x. The historical average is 22.4x. 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 19.1x. 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 27.9x. 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 1.35% with a payout ratio of 49.1%.
What are Royalty Pharma plc's profit margins?
Royalty Pharma plc has 100.0% gross margin and 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.