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Royalty Pharma (FRA:RPD) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Royalty Pharma Forward PE Ratio Related Terms
Royalty Pharma Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Forward PE Ratio 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.
Royalty Pharma Forward PE Ratio Chart
Royalty Pharma Annual Data
Trend
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
16.00
11.98
10.01
6.78
5.76
7.44
Royalty Pharma Quarterly Data
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
16.00
15.97
16.10
14.47
11.98
11.70
14.08
10.88
10.01
8.98
7.50
6.01
6.78
9.10
9.48
9.18
5.76
6.33
7.84
6.86
7.44
9.42
FRA:RPD vs ROIV, MRNA, BNTX: Forward PE Ratio Comparison
For the Biotechnology subindustry, Royalty Pharma's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Royalty Pharma (FRA:RPD) has a Forward PE Ratio of 10.67 as of Jul. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Royalty Pharma and its competitors. According to the industry distribution chart, Royalty Pharma ranks #96 out of 354 companies in the Biotechnology industry, placing it in the top 27.1%.
Is Royalty Pharma's Forward PE Ratio too high?
Royalty Pharma's current Forward PE Ratio is 10.67. The Biotechnology industry median Forward PE Ratio is 22.28. Royalty Pharma's value of 10.67 is 52.1% below this industry median. Based on the distribution chart, Royalty Pharma ranks #96 out of 354 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 Forward PE Ratio compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #96 out of 354 companies for Forward PE Ratio. This puts Royalty Pharma in the upper half of its industry. The industry median Forward PE Ratio is 22.28. Royalty Pharma's value of 10.67 is 52.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Biotechnology company?
The median Forward PE Ratio among Biotechnology companies is 22.28, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current Forward PE Ratio of 10.67 is 52.1% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median Forward PE Ratio is 22.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current Forward PE Ratio is 10.67. 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 €32.54, compared to a current price of €47.97 — trading 47.4% above its estimated fair value. The current Forward PE Ratio is 10.67 and 52.1% below the Biotechnology industry median of 22.28. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current Forward PE Ratio is 10.67 as of Jul. 14, 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 €47.97 is trading 47.4% above its estimated GF Value™ of €32.54.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
Forward PE Ratio: 10.67
GF Value™: €32.54 vs. price of €47.97 (47.4% above fair value)
Industry Position: 52.1% below the Biotechnology median (#96 of 354)
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
Get the complete analysis for FRA:RPD
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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