Royalty Pharma Valuation
| RPRX Stock | USD 33.70 0.20 0.60% |
At this time, the company appears to be overvalued. Royalty Pharma Plc holds a recent Real Value of $31.2 per share. The prevailing price of the company is $33.7. Our model determines the value of Royalty Pharma Plc from analyzing the company fundamentals such as Return On Equity of 0.13, operating margin of 0.61 %, and Shares Outstanding of 433.32 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Royalty Pharma's valuation include:
Price Book 2.0841 | Enterprise Value | Enterprise Value Ebitda 13.0556 | Price Sales 8.5313 | Forward PE 10.7527 |
Overvalued
Today
Please note that Royalty Pharma's price fluctuation is very steady at this time. Calculation of the real value of Royalty Pharma Plc is based on 3 months time horizon. Increasing Royalty Pharma's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Royalty Pharma is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Royalty Stock. However, Royalty Pharma's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 33.7 | Real 31.2 | Target 40.66 | Hype 33.41 | Naive 32.37 |
The intrinsic value of Royalty Pharma's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Royalty Pharma's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Royalty Pharma Plc helps investors to forecast how Royalty stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Royalty Pharma more accurately as focusing exclusively on Royalty Pharma's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Royalty Pharma's intrinsic value based on its ongoing forecasts of Royalty Pharma's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Royalty Pharma's closest peers.
Royalty Pharma Cash |
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Royalty Valuation Trend
Analysing the historical paterns of Royalty Pharma's enterprise value and its market capitalization is a good way to estimate and gauge the value of Royalty Pharma Plc over time and is usually enough for investors to make rational market timing decisions.
Royalty Revenue by Product
Royalty Pharma Total Value Analysis
Royalty Pharma Plc is at this time projected to have valuation of 20.32 B with market capitalization of 19.31 B, debt of 7.61 B, and cash on hands of 1.47 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Royalty Pharma fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
20.32 B | 19.31 B | 7.61 B | 1.47 B |
Royalty Pharma Investor Information
About 77.0% of the company shares are owned by institutional investors. The book value of Royalty Pharma was at this time reported as 15.58. The company has Price/Earnings To Growth (PEG) ratio of 2.34. Royalty Pharma Plc last dividend was issued on the 21st of February 2025. The entity had 1:4 split on the 15th of October 2010. Based on the key measurements obtained from Royalty Pharma's financial statements, Royalty Pharma Plc may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.54 | 0.5707 |
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Royalty Pharma Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Royalty Pharma has an asset utilization ratio of 12.42 percent. This suggests that the Company is making $0.12 for each dollar of assets. An increasing asset utilization means that Royalty Pharma Plc is more efficient with each dollar of assets it utilizes for everyday operations.Royalty Pharma Ownership Allocation
Royalty Pharma owns a total of 433.32 Million outstanding shares. The majority of Royalty Pharma Plc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Royalty Pharma Plc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Royalty Pharma. Please pay attention to any change in the institutional holdings of Royalty Pharma Plc as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Royalty Pharma Profitability Analysis
The company reported the previous year's revenue of 2.26 B. Net Income was 1.33 B with profit before overhead, payroll, taxes, and interest of 1.53 B.Royalty Pharma Past Distributions to stockholders
About Royalty Pharma Valuation
Our relative valuation model uses a comparative analysis of Royalty Pharma. We calculate exposure to Royalty Pharma's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Royalty Pharma's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.3 B | 1.5 B | |
| Pretax Profit Margin | 0.59 | 0.74 | |
| Operating Profit Margin | 0.57 | 0.54 | |
| Net Profit Margin | 0.38 | 0.53 | |
| Gross Profit Margin | 0.76 | 0.69 |
A single share of Royalty Pharma represents a small ownership stake in the entity. As a stockholder of Royalty, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Royalty Pharma Dividends Analysis For Valuation
Dividend Yield is likely to rise to 0.04 in 2025, despite the fact that Dividends Paid is likely to grow to (357.6 M). . Retained Earnings is likely to drop to about 1.6 B in 2025. Retained Earnings Total Equity is likely to drop to about 2.3 B in 2025
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -376.5 M | -357.6 M | |
| Dividend Yield | 0.03 | 0.04 | |
| Dividend Payout Ratio | 0.44 | 0.42 | |
| Dividend Paid And Capex Coverage Ratio | 7.36 | 4.05 |
There are various types of dividends Royalty Pharma can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Royalty shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Royalty Pharma Plc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Royalty pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Royalty Pharma by the value of the dividends paid out.
Royalty Pharma Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 592.7 M | |
| Quarterly Earnings Growth Y O Y | -0.681 | |
| Forward Price Earnings | 10.7527 |
Royalty Pharma Current Valuation Indicators
Valuation refers to the process of determining the present value of Royalty Pharma Plc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Royalty we look at many different elements of the entity such as Royalty's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Royalty Pharma, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Royalty Pharma's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Royalty Pharma's worth.Additional Tools for Royalty Stock Analysis
When running Royalty Pharma's price analysis, check to measure Royalty Pharma's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royalty Pharma is operating at the current time. Most of Royalty Pharma's value examination focuses on studying past and present price action to predict the probability of Royalty Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royalty Pharma's price. Additionally, you may evaluate how the addition of Royalty Pharma to your portfolios can decrease your overall portfolio volatility.