Royalty Pharma Plc (RPRX) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Royalty Pharma Plc stock (RPRX) is currently trading at $47.03. Royalty Pharma Plc PE ratio is 25.60. Royalty Pharma Plc PS ratio (Price-to-Sales) is 11.08. Analyst consensus price target for RPRX is $51.56. WallStSmart rates RPRX as Hold.
- RPRX PE ratio analysis and historical PE chart
- RPRX PS ratio (Price-to-Sales) history and trend
- RPRX intrinsic value — DCF, Graham Number, EPV models
- RPRX stock price prediction 2025 2026 2027 2028 2029 2030
- RPRX fair value vs current price
- RPRX insider transactions and insider buying
- Is RPRX undervalued or overvalued?
- Royalty Pharma Plc financial analysis — revenue, earnings, cash flow
- RPRX Piotroski F-Score and Altman Z-Score
- RPRX analyst price target and Smart Rating
Royalty Pharma
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RPRX Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Royalty Pharma Plc (RPRX)
RPRX trades 17% above its Graham fair value of $37.74, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Royalty Pharma Plc (RPRX) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Concerns around price/sales and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Royalty Pharma Plc (RPRX) Key Strengths (4)
Keeps $58 of every $100 in revenue after operating costs
Keeps $32 of every $100 in revenue as net profit
87.49% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Royalty Pharma Plc (RPRX) Areas to Watch (6)
Very expensive at 11.1x annual revenue
Revenue growing slowly at 4.80% annually
Paying a premium for growth, expensive relative to earnings expansion
Premium pricing at 3.0x book value
Modest earnings growth at 9.00%
Moderate profitability with room for improvement
Supporting Valuation Data
Royalty Pharma Plc (RPRX) Detailed Analysis Report
Overall Assessment
This company scores 57/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.8/10) while 6 fall into concern territory (avg 3.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. Profitability is solid with Operating Margin at 57.70%, Profit Margin at 32.40%.
The Bear Case
The primary concerns are Price/Sales, Revenue Growth, PEG Ratio. Some valuation metrics including PEG Ratio (2.62), Price/Sales (11.08), Price/Book (3.02) suggest expensive pricing. Growth concerns include Revenue Growth at 4.80%, EPS Growth at 9.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 13.20%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 13.20% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 4.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (Price/Sales, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RPRX Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RPRX's Price-to-Sales ratio of 11.08x trades at a 23% premium to its historical average of 8.98x (82th percentile). The current valuation is 9% below its historical high of 12.17x set in Apr 2021, and 101% above its historical low of 5.52x in Jan 2024. Over the past 12 months, the PS ratio has expanded from ~8.2x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Royalty Pharma Plc (RPRX) · HEALTHCARE › BIOTECHNOLOGY
The Big Picture
Royalty Pharma Plc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 2.4B with 5% growth year-over-year. Profit margins are strong at 32.4%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 32.4% and operating margin of 57.7% demonstrate strong pricing power and operational efficiency.
Generating 827M in free cash flow and 827M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Debt management: total debt of 9.0B is significantly higher than cash (619M). Monitor refinancing risk.
Sector dynamics: monitor BIOTECHNOLOGY industry trends, competitive moves, and regulatory changes that could impact Royalty Pharma Plc.
Bottom Line
Royalty Pharma Plc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Royalty Pharma Plc(RPRX)
NASDAQ
HEALTHCARE
BIOTECHNOLOGY
USA
Royalty Pharma plc is a buyer of biopharmaceutical royalties and funder of innovations in the biopharmaceutical industry in the United States. The company is headquartered in New York, New York.