Latest Ratios: P/E Ratio 32.1x · EV/EBITDA 21.2x · 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 | $24.8B | $21.6B | $15.2B | $16.9B | $22.3B | $16.5B | $19.4B | — | — | — |
| Enterprise Value | $33.1B | $30.0B | $21.8B | $22.6B | $27.7B | $22.1B | $24.2B | — | — | — |
| P/E Ratio → | 32.11 | 21.47 | 13.36 | 11.10 | 395.20 | 26.74 | 39.10 | — | — | — |
| P/S Ratio | 10.41 | 9.09 | 6.69 | 7.19 | 9.98 | 7.22 | 9.15 | — | — | — |
| P/B Ratio | 3.33 | 2.23 | 1.47 | 1.68 | 2.34 | 1.61 | 1.96 | — | — | — |
| P/FCF | 9.95 | 8.68 | 5.47 | 5.67 | 10.41 | 8.19 | 9.55 | — | — | — |
| P/OCF | 9.95 | 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 | 21.17 | 19.16 | 14.03 | 11.97 | 88.67 | 15.19 | 14.97 | — | — | — |
| EV / EBIT | 21.22 | 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 | 10.1% | 11.5% | 18.3% | 17.6% | 9.6% | 12.2% | 10.5% | — | — | — |
| Buyback Yield | 5.0% | 5.7% | 1.5% | 1.8% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.1% | 7.4% | 4.0% | 3.9% | 1.5% | 1.7% | 2.0% | — | — | — |
| Shares Outstanding | — | $560M | $594M | $603M | $565M | $415M | $388M | $354M | $354M | $354M |
Patent cliff reinvestment risk
According to current market data, RPRX trades at a forward P/E of 10.96, which appears to discount the company's long-term growth prospects relative to its historical P/E of 31.24, suggesting that investors are increasingly wary of the sustainability of royalty streams as key assets approach patent expiration.
The significant compression between trailing and forward multiples indicates that the market is pricing in a deceleration in earnings growth, likely driven by the need for massive capital deployment to replace maturing assets. This valuation gap warrants further investigation into whether the current price adequately compensates for the inherent reinvestment risk and the potential for lower-yielding future acquisitions.
Based on reported figures, RPRX's ROIC has remained in the low single digits, fluctuating between -0.4% and 3.4% over the last ten quarters, which suggests that the company struggles to generate high returns on its massive, capital-intensive portfolio acquisitions compared to smaller, more agile royalty aggregators.
The low ROIC relative to the cost of capital implies that the firm's growth strategy may be dilutive to shareholder value if the internal rate of return on new deals does not significantly exceed the cost of debt. Investors should monitor whether management can improve capital efficiency through more selective deal-making or if the current scale inherently limits the potential for superior compounding.
As reported in recent financial statements, the company's debt-to-EBITDA ratio has shown significant volatility, peaking at 50.23 in 2025Q2, which indicates that the firm's reliance on leverage to fund large-scale royalty acquisitions creates a precarious balance between growth and the ability to service interest obligations.
While the interest coverage ratio has remained above 4.0x in most recent periods, the extreme swings in leverage metrics suggest that the company's financial flexibility is highly sensitive to the timing of cash receipts from its portfolio. This volatility necessitates a cautious outlook on the firm's ability to maintain its current debt profile if interest rates remain elevated or if asset performance underperforms expectations.
As evidenced by the discrepancy between GAAP earnings and cash flow, the P/E ratio is a fundamentally flawed metric for RPRX, as it fails to account for the massive non-cash amortization of intangible assets that artificially depresses reported net income and obscures the firm's true cash-generating power.
Analysts should prioritize Adjusted Cash Receipts and P/FCF multiples to better assess the company's valuation, as these metrics strip out the accounting noise inherent in the royalty business model. Relying on P/E likely leads to a persistent undervaluation of the company's actual ability to fund dividends and future growth through its robust free cash flow generation.
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 32.1x. 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 21.2x. 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 32.1x. 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.