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Royalty PharmaFRA:RPD +0.91%72 EV-to-EBIT is 22.17 as of Jul. 25, 2026, which is 19% above its 10-year median of 18.67. GuruFocus rates FRA:RPD with a GF Score™ of 72/100 and a GF Value™ of €33.78 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 376 Biotechnology companies, Royalty Pharma ranks worse than 62.77% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Royalty Pharma's Enterprise Value for the quarter that ended in Mar. 2026 was €26,960 Mil.
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,455 Mil.
* 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.
Royalty Pharma EV-to-EBIT Related Terms
Royalty Pharma EV-to-EBIT Historical Data
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The historical data trend for Royalty Pharma's EV-to-EBIT 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.
FRA:RPD vs ROIV, MRNA, BNTX: EV-to-EBIT Comparison
For the Biotechnology subindustry, Royalty Pharma's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's EV-to-EBIT falls into.
Royalty Pharma's current Enterprise Value is €32,254 Mil.
Royalty Pharma's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,455 Mil.
* 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.
Royalty Pharma (FRA:RPD) has a EV-to-EBIT of 22.17 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Royalty Pharma and its competitors. This is 19% above median its historical median of 18.67. Over the past decade, Royalty Pharma's EV-to-EBIT has ranged from 7.42 to 62.28. According to the industry distribution chart, Royalty Pharma ranks #236 out of 376 companies in the Biotechnology industry, placing it in the top 62.8%.
Is Royalty Pharma's EV-to-EBIT too high?
Royalty Pharma's current EV-to-EBIT of 22.17 is 19% above median its 10-year median of 18.67. Over the past 10 years, this metric has ranged from a low of 7.42 to a high of 62.28. The Biotechnology industry median EV-to-EBIT is 12.95. Royalty Pharma's value of 22.17 is 71.3% above this industry median. Based on the distribution chart, Royalty Pharma ranks #236 out of 376 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Royalty Pharma has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's EV-to-EBIT compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #236 out of 376 companies for EV-to-EBIT. This places Royalty Pharma in the lower half of its industry. The industry median EV-to-EBIT is 12.95. Royalty Pharma's value of 22.17 is 71.3% above this benchmark. Historically, Royalty Pharma's own EV-to-EBIT has ranged from 7.42 to 62.28 over the past decade. While the company's 10-year median is 18.67 vs. the industry median of 12.95, Royalty Pharma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Biotechnology company?
The median EV-to-EBIT among Biotechnology companies is 12.95, based on 376 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current EV-to-EBIT of 22.17 is 71.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median EV-to-EBIT is 12.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current EV-to-EBIT is 22.17, which is 19% above median its own 10-year median of 18.67. 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 (FRA:RPD) is currently considered Significantly Overvalued. The stock's GF Value™ is €33.78, compared to a current price of €50.81 — trading 50.4% above its estimated fair value. The current EV-to-EBIT is 22.17, which is 19% above median its 10-year median of 18.67 and 71.3% above the Biotechnology industry median of 12.95. Royalty Pharma's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current EV-to-EBIT is 22.17 as of Jul. 25, 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 (FRA:RPD) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of €50.81 is trading 50.4% above its estimated GF Value™ of €33.78.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
EV-to-EBIT: 22.17 (19% above median its 10-year median of 18.67)
GF Value™: €33.78 vs. price of €50.81 (50.4% above fair value)
Industry Position: 71.3% above the Biotechnology median (#236 of 376)
No single metric tells the full story. See the FRA: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.
72GF Score
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