Royalty Pharma (FRA:RPD) Moat Score: 8/10 (As of Jun. 30, 2026)


FRA:RPD Royalty Pharma PLC FRA:RPD
70 GF Score
Price €47.80
GF Value €31.66
Valuation Significantly Overvalued
! 10 Warning Signs
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What is Royalty Pharma Moat Score?

Royalty Pharma FRA:RPD +0.68% 70 Moat Score is 8 as of Jun. 30, 2026. GuruFocus rates FRA:RPD with a GF Score™ of 70/100 and a GF Value™ of €31.66 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,401 Biotechnology companies, Royalty Pharma ranks better than 99.93% on this metric.

Royalty Pharma has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Royalty Pharma has Wide Moat: Royalty Pharma PLC has a robust wide moat due to its valuable intellectual property, strong pricing power, and significant regulatory barriers. Its unique business model and extensive portfolio of pharmaceutical royalties provide durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Royalty Pharma might have Wide Moat - Clear and robust wide moat.

Royalty Pharma  (FRA:RPD) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Royalty Pharma Moat Score Related Terms

FRA:RPD vs ROIV, MRNA, BNTX: Moat Score Comparison

For the Biotechnology subindustry, Royalty Pharma's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Royalty Pharma's Moat Score distribution charts can be found below:

* The bar in red indicates where Royalty Pharma's Moat Score falls into.


FRA:RPD
70GF Score
Royalty Pharma PLC FRA:RPD
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Royalty Pharma (FRA:RPD) has a Moat Score of 8 as of Jun. 30, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Royalty Pharma ranks #1 out of 1401 companies in the Biotechnology industry, placing it in the top 0.099999999999994%.
Is Royalty Pharma's Moat Score too high?
Royalty Pharma's current Moat Score is 8. The Biotechnology industry median Moat Score is 2.00. Royalty Pharma's value of 8 is 300% above this industry median. Based on the distribution chart, Royalty Pharma ranks #1 out of 1401 companies in the Biotechnology industry, which is in the top quartile — a strong position 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 Moat Score compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #1 out of 1401 companies for Moat Score. This places Royalty Pharma in the top 0% of its industry — outperforming the majority of peers. The industry median Moat Score is 2.00. Royalty Pharma's value of 8 is 300% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Biotechnology company?
The median Moat Score among Biotechnology companies is 2.00, based on 1,401 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current Moat Score of 8 is 300% above 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Biotechnology industry, the median Moat Score is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current Moat Score is 8. 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 €31.66, compared to a current price of €47.80 — trading 51% above its estimated fair value. The current Moat Score is 8 and 300% above the Biotechnology industry median of 2.00. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current Moat Score is 8 as of Jun. 30, 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 €47.80 is trading 51% above its estimated GF Value™ of €31.66. GuruFocus considers Royalty Pharma to be Significantly Overvalued.

Key valuation signals for FRA:RPD:

  • Moat Score: 8
  • GF Value™: €31.66 vs. price of €47.80 (51% above fair value)
  • GF Score™: 70/100 with 10 warning signs
  • Industry Position: 300% above the Biotechnology median (#1 of 1401)

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 Business Description

Other Exchanges RPRX:USA
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.
70GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€47.80
Price
€31.66
GF Value