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Royalty Pharma (STU:RPD) Intrinsic Value: Projected FCF : €38.50 (As of Jun. 02, 2025)


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What is Royalty Pharma Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2025-06-02), Royalty Pharma's Intrinsic Value: Projected FCF is €38.50. The stock price of Royalty Pharma is €28.54. Therefore, Royalty Pharma's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

The historical rank and industry rank for Royalty Pharma's Intrinsic Value: Projected FCF or its related term are showing as below:

STU:RPD' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.6   Med: 0.7   Max: 0.74
Current: 0.74

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Royalty Pharma was 0.74. The lowest was 0.60. And the median was 0.70.

STU:RPD's Price-to-Projected-FCF is ranked better than
87.45% of 231 companies
in the Biotechnology industry
Industry Median: 2.12 vs STU:RPD: 0.74

Royalty Pharma Intrinsic Value: Projected FCF Historical Data

The historical data trend for Royalty Pharma's Intrinsic Value: Projected 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.

* Premium members only.

Royalty Pharma Intrinsic Value: Projected FCF Chart

Royalty Pharma Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - - 40.42

Royalty Pharma Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 35.77 40.42 41.07

Competitive Comparison of Royalty Pharma's Intrinsic Value: Projected FCF

For the Biotechnology subindustry, Royalty Pharma's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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's Price-to-Projected-FCF Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Royalty Pharma's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Royalty Pharma's Price-to-Projected-FCF falls into.


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Royalty Pharma Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Royalty Pharma's Free Cash Flow(6 year avg) = €1,934.23.

Royalty Pharma's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar25)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*1934.23024+6186.998*0.8)/578.000
=40.42

* 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  (STU:RPD) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Royalty Pharma's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=28.54/40.422405453888
=0.71

* 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 Intrinsic Value: Projected FCF Related Terms

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Royalty Pharma Business Description

Industry
Traded in Other Exchanges
Address
110 East 59th Street, New York, NY, USA, 10022
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.