Royalty PharmaFRA:RPD -2.98%70 Return-on-Tangible-Asset is 6.31% as of Mar. 2026, which is 7% above its 10-year median of 5.90. GuruFocus rates FRA:RPD with a GF Score™ of 70/100 and a GF Value™ of €32.06 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,416 Biotechnology companies, Royalty Pharma ranks better than 86.65% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Royalty Pharma's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,020 Mil. Royalty Pharma's average total tangible assets for the quarter that ended in Mar. 2026 was €16,154 Mil. Therefore, Royalty Pharma's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.31%.
The historical rank and industry rank for Royalty Pharma's Return-on-Tangible-Asset or its related term are showing as below:
FRA:RPD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.25 Med: 5.9 Max: 19.82
Current: 4.54
During the past 9 years, Royalty Pharma's highest Return-on-Tangible-Asset was 19.82%. The lowest was 0.25%. And the median was 5.90%.
FRA:RPD's Return-on-Tangible-Asset is ranked better than 86.65% of 1416
companies
in the Biotechnology industry
Industry Median: -35.76
vs FRA:RPD: 4.54
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Royalty Pharma Return-on-Tangible-Asset Related Terms
Royalty Pharma Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Return-on-Tangible-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, MRNA, BNTX: Return-on-Tangible-Asset Comparison
For the Biotechnology subindustry, Royalty Pharma's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Asset vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.31% mean?
Royalty Pharma (FRA:RPD) has a Return-on-Tangible-Asset of 6.31% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Royalty Pharma and its competitors. This is near median its historical median of 5.90. Over the past decade, Royalty Pharma's Return-on-Tangible-Asset has ranged from 0.25 to 19.82. According to the industry distribution chart, Royalty Pharma ranks #189 out of 1416 companies in the Biotechnology industry, placing it in the top 13.3%.
Is Royalty Pharma's Return-on-Tangible-Asset too high?
Royalty Pharma's current Return-on-Tangible-Asset of 6.31% is near median its 10-year median of 5.90. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 19.82. Based on the distribution chart, Royalty Pharma ranks #189 out of 1416 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 Return-on-Tangible-Asset compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #189 out of 1416 companies for Return-on-Tangible-Asset. This places Royalty Pharma in the top 13% of its industry — outperforming the majority of peers. Historically, Royalty Pharma's own Return-on-Tangible-Asset has ranged from 0.25 to 19.82 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Biotechnology company?
A good Return-on-Tangible-Asset depends on the Biotechnology industry context. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Royalty Pharma and its competitors. Royalty Pharma's current Return-on-Tangible-Asset is 6.31%, which is near median its own 10-year median of 5.90. 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 (FRA:RPD) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.06, compared to a current price of €48.51 — trading 51.3% above its estimated fair value. The current Return-on-Tangible-Asset is 6.31%, which is near median its 10-year median of 5.90. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current Return-on-Tangible-Asset is 6.31% as of Mar. 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 €48.51 is trading 51.3% above its estimated GF Value™ of €32.06.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
Return-on-Tangible-Asset: 6.31% (near median its 10-year median of 5.90)
GF Value™: €32.06 vs. price of €48.51 (51.3% above fair value)
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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