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Royalty PharmaFRA:RPD +0.20%67 EV-to-OCF is 21.01 as of Aug. 13, 2026, which is 62% above its 10-year median of 12.98. GuruFocus rates FRA:RPD with a GF Score™ of 67/100 and a GF Value™ of €27.94 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,408 Biotechnology companies, Royalty Pharma ranks worse than 88.64% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Royalty Pharma's Enterprise Value is €53,745 Mil.
Royalty Pharma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €2,559 Mil. Therefore, Royalty Pharma's EV-to-OCF for today is 21.01.
The historical rank and industry rank for Royalty Pharma's EV-to-OCF or its related term are showing as below:
FRA:RPD'
s EV-to-OCF Range Over the Past 10 Years
Min: 8.32 Med: 12.98 Max: 29.27
Current: 20.84
During the past 9 years, the highest EV-to-OCF of Royalty Pharma was 29.27. The lowest was 8.32. And the median was 12.98.
FRA:RPD's EV-to-OCF is ranked worse than 88.64% of 1408
companies
in the Biotechnology industry
Industry Median: -3.53
vs FRA:RPD: 20.84
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 €49.365.
Royalty Pharma's Earnings per Share (Diluted) 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 €1.376.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Royalty Pharma EV-to-OCF Related Terms
Royalty Pharma EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's EV-to-OCF 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 EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's EV-to-OCF falls into.
Royalty Pharma's current Enterprise Value is €53,745 Mil.
Royalty Pharma's Cash Flow from Operations 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 €2,559 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-OCF of 21.01 as of Aug. 13, 2026. This is 62% above median its historical median of 12.98. Over the past decade, Royalty Pharma's EV-to-OCF has ranged from 8.32 to 29.27. According to the industry distribution chart, Royalty Pharma ranks #1248 out of 1408 companies in the Biotechnology industry, placing it in the top 88.6%.
Is Royalty Pharma's EV-to-OCF too high?
Royalty Pharma's current EV-to-OCF of 21.01 is 62% above median its 10-year median of 12.98. Over the past 10 years, this metric has ranged from a low of 8.32 to a high of 29.27. Based on the distribution chart, Royalty Pharma ranks #1248 out of 1408 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Royalty Pharma has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's EV-to-OCF compare to ROIV and INCY?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #1248 out of 1408 companies for EV-to-OCF. This places Royalty Pharma in the lower half of its industry. Historically, Royalty Pharma's own EV-to-OCF has ranged from 8.32 to 29.27 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 EV-to-OCF for a Biotechnology company?
A good EV-to-OCF depends on the Biotechnology industry context. However, EV-to-OCF 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. Royalty Pharma's current EV-to-OCF is 21.01, which is 62% above median its own 10-year median of 12.98. 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 €27.94, compared to a current price of €49.37 — trading 76.7% above its estimated fair value. The current EV-to-OCF is 21.01, which is 62% above median its 10-year median of 12.98. Royalty Pharma's overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current EV-to-OCF is 21.01 as of Aug. 13, 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 €49.37 is trading 76.7% above its estimated GF Value™ of €27.94.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
EV-to-OCF: 21.01 (62% above median its 10-year median of 12.98)
GF Value™: €27.94 vs. price of €49.37 (76.7% above fair value)
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.
67GF Score
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