Royalty PharmaRPRX +2.83%72 EV-to-FCF is 13.61 as of Jun. 27, 2026, which is 6% above its 10-year median of 12.90. GuruFocus rates RPRX with a GF Score™ of 72/100 and a GF Value™ of $37.52 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 333 Biotechnology companies, Royalty Pharma ranks better than 52.85% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Royalty Pharma's Enterprise Value is $35,555 Mil.
Royalty Pharma's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $2,612 Mil. Therefore, Royalty Pharma's EV-to-FCF for today is 13.61.
The historical rank and industry rank for Royalty Pharma's EV-to-FCF or its related term are showing as below:
RPRX'
s EV-to-FCF Range Over the Past 10 Years
Min: 8.32 Med: 12.9 Max: 29.27
Current: 13.61
During the past 9 years, the highest EV-to-FCF of Royalty Pharma was 29.27. The lowest was 8.32. And the median was 12.90.
RPRX's EV-to-FCF is ranked better than 52.85% of 333
companies
in the Biotechnology industry
Industry Median: 14.65
vs RPRX: 13.61
EV-to-FCF 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-FCF 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 $56.26.
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 $1.795.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Royalty Pharma EV-to-FCF Related Terms
Royalty Pharma EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's EV-to-FCF falls into.
Royalty Pharma's current Enterprise Value is $35,555 Mil.
Royalty Pharma's Free Cash Flow 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 $2,612 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 (RPRX) has a EV-to-FCF of 13.61 as of Jun. 27, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Royalty Pharma and its competitors. This is near median its historical median of 12.90. Over the past decade, Royalty Pharma's EV-to-FCF has ranged from 8.32 to 29.27. According to the industry distribution chart, Royalty Pharma ranks #157 out of 333 companies in the Biotechnology industry, placing it in the top 47.1%.
Is Royalty Pharma's EV-to-FCF too high?
Royalty Pharma's current EV-to-FCF of 13.61 is near median its 10-year median of 12.90. Over the past 10 years, this metric has ranged from a low of 8.32 to a high of 29.27. The Biotechnology industry median EV-to-FCF is 14.65. Royalty Pharma's value of 13.61 is 7.1% below this industry median. Based on the distribution chart, Royalty Pharma ranks #157 out of 333 companies in the Biotechnology industry, which is above 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-FCF compare to BNTX and INSM?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #157 out of 333 companies for EV-to-FCF. This puts Royalty Pharma in the upper half of its industry. The industry median EV-to-FCF is 14.65. Royalty Pharma's value of 13.61 is 7.1% below this benchmark. Historically, Royalty Pharma's own EV-to-FCF has ranged from 8.32 to 29.27 over the past decade. While the company's 10-year median is 12.90 vs. the industry median of 14.65, 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 EV-to-FCF for a Biotechnology company?
The median EV-to-FCF among Biotechnology companies is 14.65, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current EV-to-FCF of 13.61 is 7.1% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median EV-to-FCF is 14.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current EV-to-FCF is 13.61, which is near median its own 10-year median of 12.90. 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 (RPRX) is currently considered Significantly Overvalued. The stock's GF Value™ is $37.52, compared to a current price of $56.26 — trading 49.9% above its estimated fair value. The current EV-to-FCF is 13.61, which is near median its 10-year median of 12.90 and 7.1% below the Biotechnology industry median of 14.65. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Royalty Pharma (RPRX), the current EV-to-FCF is 13.61 as of Jun. 27, 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 (RPRX) Overvalued in 2026?
Based on GuruFocus' analysis, Royalty Pharma stock appears to be overvalued.
The current stock price of $56.26 is trading 49.9% above its estimated GF Value™ of $37.52.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for RPRX:
EV-to-FCF: 13.61 (near median its 10-year median of 12.90)
GF Value™: $37.52 vs. price of $56.26 (49.9% above fair value)
Industry Position: 7.1% below the Biotechnology median (#157 of 333)
No single metric tells the full story. See the RPRX 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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