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Royalty PharmaSTU:RPD +2.33%65 Earnings Yield (Joel Greenblatt) % is 2.89% as of Jun. 2026, which is 46% below its 10-year median of 5.33. GuruFocus rates STU:RPD with a GF Score™ of 65/100 and a GF Value™ of €27.34 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,328 Biotechnology companies, Royalty Pharma ranks better than 86.14% on this metric.
Royalty Pharma's Enterprise Value for the quarter that ended in Jun. 2026 was €51,916 Mil.
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was €1,469 Mil. Royalty Pharma's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 2.89%.
The historical rank and industry rank for Royalty Pharma's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
STU:RPD'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.61 Med: 5.33 Max: 13.47
Current: 2.81
During the past 9 years, the highest Earnings Yield (Joel Greenblatt) of Royalty Pharma was 13.47%. The lowest was 1.61%. And the median was 5.33%.
STU:RPD's Earnings Yield (Joel Greenblatt) % is ranked better than 86.14% of 1328
companies
in the Biotechnology industry
Industry Median: -10.11
vs STU:RPD: 2.81
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Royalty Pharma's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 18.18%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Royalty Pharma Earnings Yield (Joel Greenblatt) % Related Terms
Royalty Pharma Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Royalty Pharma's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royalty Pharma Earnings Yield (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Royalty Pharmas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,469 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 2.89% mean?
Royalty Pharma (STU:RPD) has a Earnings Yield (Joel Greenblatt) % of 2.89% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Royalty Pharma and its competitors. This is 46% below median its historical median of 5.33. Over the past decade, Royalty Pharma's Earnings Yield (Joel Greenblatt) % has ranged from 1.61 to 13.47. According to the industry distribution chart, Royalty Pharma ranks #184 out of 1328 companies in the Biotechnology industry, placing it in the top 13.9%.
Is Royalty Pharma's Earnings Yield (Joel Greenblatt) % too high?
Royalty Pharma's current Earnings Yield (Joel Greenblatt) % of 2.89% is 46% below median its 10-year median of 5.33. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 13.47. Based on the distribution chart, Royalty Pharma ranks #184 out of 1328 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Royalty Pharma has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's Earnings Yield (Joel Greenblatt) % compare to ROIV and INCY?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #184 out of 1328 companies for Earnings Yield (Joel Greenblatt) %. This places Royalty Pharma in the top 14% of its industry — outperforming the majority of peers. Historically, Royalty Pharma's own Earnings Yield (Joel Greenblatt) % has ranged from 1.61 to 13.47 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Biotechnology company?
A good Earnings Yield (Joel Greenblatt) % depends on the Biotechnology industry context. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Royalty Pharma and its competitors. Royalty Pharma's current Earnings Yield (Joel Greenblatt) % is 2.89%, which is 46% below median its own 10-year median of 5.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royalty Pharma stock overvalued right now?
Based on GuruFocus' analysis, Royalty Pharma (STU:RPD) is currently considered Significantly Overvalued. The stock's GF Value™ is €27.34, compared to a current price of €50.12 — trading 83.3% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 2.89%, which is 46% below median its 10-year median of 5.33. Royalty Pharma's overall GF Score™ is 65/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Royalty Pharma (STU:RPD), the current Earnings Yield (Joel Greenblatt) % is 2.89% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royalty Pharma (STU:RPD) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of €50.12 is trading 83.3% above its estimated GF Value™ of €27.34.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for STU:RPD:
Earnings Yield (Joel Greenblatt) %: 2.89% (46% below median its 10-year median of 5.33)
GF Value™: €27.34 vs. price of €50.12 (83.3% above fair value)
No single metric tells the full story. See the STU:RPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
65GF Score
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Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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