Royalty PharmaFRA:RPD +6.69%68 Return-on-Tangible-Equity is 20.60% as of Mar. 2026, which is 34% above its 10-year median of 15.37. GuruFocus rates FRA:RPD with a GF Score™ of 68/100 and a GF Value™ of €32.39 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,199 Biotechnology companies, Royalty Pharma ranks better than 89.07% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Royalty Pharma's annualized net income for the quarter that ended in Mar. 2026 was €1,020 Mil. Royalty Pharma's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €4,950 Mil. Therefore, Royalty Pharma's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.60%.
The historical rank and industry rank for Royalty Pharma's Return-on-Tangible-Equity or its related term are showing as below:
FRA:RPD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.75 Med: 15.37 Max: 44.88
Current: 14.21
During the past 9 years, Royalty Pharma's highest Return-on-Tangible-Equity was 44.88%. The lowest was 0.75%. And the median was 15.37%.
FRA:RPD's Return-on-Tangible-Equity is ranked better than 89.07% of 1199
companies
in the Biotechnology industry
Industry Median: -42.4
vs FRA:RPD: 14.21
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Royalty Pharma Return-on-Tangible-Equity Related Terms
Royalty Pharma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Royalty Pharma's Return-on-Tangible-Equity 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-Equity Comparison
For the Biotechnology subindustry, Royalty Pharma's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.60% mean?
Royalty Pharma (FRA:RPD) has a Return-on-Tangible-Equity of 20.60% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Royalty Pharma and its competitors. This is 34% above median its historical median of 15.37. Over the past decade, Royalty Pharma's Return-on-Tangible-Equity has ranged from 0.75 to 44.88. According to the industry distribution chart, Royalty Pharma ranks #131 out of 1199 companies in the Biotechnology industry, placing it in the top 10.9%.
Is Royalty Pharma's Return-on-Tangible-Equity too high?
Royalty Pharma's current Return-on-Tangible-Equity of 20.60% is 34% above median its 10-year median of 15.37. Over the past 10 years, this metric has ranged from a low of 0.75 to a high of 44.88. Based on the distribution chart, Royalty Pharma ranks #131 out of 1199 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 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royalty Pharma's Return-on-Tangible-Equity compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #131 out of 1199 companies for Return-on-Tangible-Equity. This places Royalty Pharma in the top 11% of its industry — outperforming the majority of peers. Historically, Royalty Pharma's own Return-on-Tangible-Equity has ranged from 0.75 to 44.88 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-Equity for a Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. However, Return-on-Tangible-Equity 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Royalty Pharma and its competitors. Royalty Pharma's current Return-on-Tangible-Equity is 20.60%, which is 34% above median its own 10-year median of 15.37. 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 €32.39, compared to a current price of €52.78 — trading 63% above its estimated fair value. The current Return-on-Tangible-Equity is 20.60%, which is 34% above median its 10-year median of 15.37. Royalty Pharma's overall GF Score™ is 68/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current Return-on-Tangible-Equity is 20.60% 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 €52.78 is trading 63% above its estimated GF Value™ of €32.39.
GuruFocus considers Royalty Pharma to be Significantly Overvalued.
Key valuation signals for FRA:RPD:
Return-on-Tangible-Equity: 20.60% (34% above median its 10-year median of 15.37)
GF Value™: €32.39 vs. price of €52.78 (63% 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.
68GF Score
Get the complete analysis for FRA:RPD
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:RPD has been successfully added to your 
