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Royalty PharmaFRA:RPD +1.85%70 Equity-to-Asset is 0.35 as of Jun. 2026, which is at its 10-year median of 0.35. GuruFocus rates FRA:RPD with a GF Score™ of 70/100 and a GF Value™ of €26.38 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,415 Biotechnology companies, Royalty Pharma ranks worse than 76.4% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Royalty Pharma's Total Stockholders Equity for the quarter that ended in Jun. 2026 was €5,931 Mil. Royalty Pharma's Total Assets for the quarter that ended in Jun. 2026 was €17,204 Mil.
Therefore, Royalty Pharma's Equity to Asset Ratio for the quarter that ended in Jun. 2026 was 0.35.
The historical rank and industry rank for Royalty Pharma's Equity-to-Asset or its related term are showing as below:
FRA:RPD'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.27 Med: 0.35 Max: 0.49
Current: 0.35
During the past 9 years, the highest Equity to Asset Ratio of Royalty Pharma was 0.49. The lowest was 0.27. And the median was 0.35.
FRA:RPD's Equity-to-Asset is ranked worse than 76.4% of 1415
companies
in the Biotechnology industry
Industry Median: 0.68
vs FRA:RPD: 0.35
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Royalty Pharma Equity-to-Asset Related Terms
Royalty Pharma Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Equity-to-Asset 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: Equity-to-Asset Comparison
For the Biotechnology subindustry, Royalty Pharma's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Royalty Pharma's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Equity-to-Asset of 0.35 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Royalty Pharma and its competitors. This is near median its historical median of 0.35. Over the past decade, Royalty Pharma's Equity-to-Asset has ranged from 0.27 to 0.49. According to the industry distribution chart, Royalty Pharma ranks #1081 out of 1415 companies in the Biotechnology industry, placing it in the top 76.4%.
Is Royalty Pharma's Equity-to-Asset too high?
Royalty Pharma's current Equity-to-Asset of 0.35 is near median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 0.49. The Biotechnology industry median Equity-to-Asset is 0.68. Royalty Pharma's value of 0.35 is 48.5% below this industry median. Based on the distribution chart, Royalty Pharma ranks #1081 out of 1415 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Royalty Pharma has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's Equity-to-Asset compare to ROIV and INCY?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #1081 out of 1415 companies for Equity-to-Asset. This places Royalty Pharma in the lower half of its industry. The industry median Equity-to-Asset is 0.68. Royalty Pharma's value of 0.35 is 48.5% below this benchmark. Historically, Royalty Pharma's own Equity-to-Asset has ranged from 0.27 to 0.49 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 0.68, Royalty Pharma has consistently been below 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 Equity-to-Asset for a Biotechnology company?
The median Equity-to-Asset among Biotechnology companies is 0.68, based on 1,415 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current Equity-to-Asset of 0.35 is 48.5% below 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median Equity-to-Asset is 0.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current Equity-to-Asset is 0.35, which is near median its own 10-year median of 0.35. 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 €26.38, compared to a current price of €49.27 — trading 86.8% above its estimated fair value. The current Equity-to-Asset is 0.35, which is near median its 10-year median of 0.35 and 48.5% below the Biotechnology industry median of 0.68. Royalty Pharma's overall GF Score™ is 70/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current Equity-to-Asset is 0.35 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 (FRA:RPD) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of €49.27 is trading 86.8% above its estimated GF Value™ of €26.38.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
Equity-to-Asset: 0.35 (near median its 10-year median of 0.35)
GF Value™: €26.38 vs. price of €49.27 (86.8% above fair value)
Industry Position: 48.5% below the Biotechnology median (#1081 of 1415)
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.
70GF Score
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