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Royalty PharmaFRA:RPD +0.91%72 EV-to-EBITDA is 22.10 as of Jul. 26, 2026, which is 19% above its 10-year median of 18.62. 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 404 Biotechnology companies, Royalty Pharma ranks worse than 65.35% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Royalty Pharma's enterprise value is €32,254 Mil.
Royalty Pharma's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was €1,459 Mil. Therefore, Royalty Pharma's EV-to-EBITDA for today is 22.10.
The historical rank and industry rank for Royalty Pharma's EV-to-EBITDA or its related term are showing as below:
FRA:RPD'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.37 Med: 18.62 Max: 61.44
Current: 21.58
During the past 9 years, the highest EV-to-EBITDA of Royalty Pharma was 61.44. The lowest was 7.37. And the median was 18.62.
FRA:RPD's EV-to-EBITDA is ranked worse than 65.35% of 404
companies
in the Biotechnology industry
Industry Median: 11.82
vs FRA:RPD: 21.58
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Royalty Pharma (FRA:RPD) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Royalty Pharma's PE Ratio (TTM) for today is calculated as:
Royalty Pharma's share price for today is €50.81.
Royalty Pharma's Earnings per Share (Diluted) 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 €1.541.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Royalty Pharma's EV-to-EBITDA 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, INCY, INSM: EV-to-EBITDA Comparison
For the Biotechnology subindustry, Royalty Pharma's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's EV-to-EBITDA falls into.
Royalty Pharma's current Enterprise Value is €32,254 Mil.
Royalty Pharma's EBITDA 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 €1,459 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-EBITDA of 22.10 as of Jul. 26, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Royalty Pharma. This is 19% above median its historical median of 18.62. Over the past decade, Royalty Pharma's EV-to-EBITDA has ranged from 7.37 to 61.44. According to the industry distribution chart, Royalty Pharma ranks #264 out of 404 companies in the Biotechnology industry, placing it in the top 65.3%.
Is Royalty Pharma's EV-to-EBITDA too high?
Royalty Pharma's current EV-to-EBITDA of 22.10 is 19% above median its 10-year median of 18.62. Over the past 10 years, this metric has ranged from a low of 7.37 to a high of 61.44. The Biotechnology industry median EV-to-EBITDA is 11.82. Royalty Pharma's value of 22.10 is 87% above this industry median. Based on the distribution chart, Royalty Pharma ranks #264 out of 404 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-EBITDA compare to ROIV and INCY?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #264 out of 404 companies for EV-to-EBITDA. This places Royalty Pharma in the lower half of its industry. The industry median EV-to-EBITDA is 11.82. Royalty Pharma's value of 22.10 is 87% above this benchmark. Historically, Royalty Pharma's own EV-to-EBITDA has ranged from 7.37 to 61.44 over the past decade. While the company's 10-year median is 18.62 vs. the industry median of 11.82, 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-EBITDA for a Biotechnology company?
The median EV-to-EBITDA among Biotechnology companies is 11.82, based on 404 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current EV-to-EBITDA of 22.10 is 87% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Royalty Pharma. For the Biotechnology industry, the median EV-to-EBITDA is 11.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current EV-to-EBITDA is 22.10, which is 19% above median its own 10-year median of 18.62. 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-EBITDA is 22.10, which is 19% above median its 10-year median of 18.62 and 87% above the Biotechnology industry median of 11.82. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current EV-to-EBITDA is 22.10 as of Jul. 26, 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-EBITDA: 22.10 (19% above median its 10-year median of 18.62)
GF Value™: €33.78 vs. price of €50.81 (50.4% above fair value)
Industry Position: 87% above the Biotechnology median (#264 of 404)
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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