Royalty PharmaFRA:RPD -2.98%70 5-Year Yield-on-Cost % is 3.83 as of Jul. 12, 2026, which is 24% below its 10-year median of 5.04. 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 153 Biotechnology companies, Royalty Pharma ranks better than 69.28% on this metric.
Royalty Pharma's yield on cost for the quarter that ended in Mar. 2026 was 3.83.
The historical rank and industry rank for Royalty Pharma's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:RPD'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.74 Med: 5.04 Max: 7.94
Current: 3.83
During the past 9 years, Royalty Pharma's highest Yield on Cost was 7.94. The lowest was 0.74. And the median was 5.04.
FRA:RPD's 5-Year Yield-on-Cost % is ranked better than 69.28% of 153
companies
in the Biotechnology industry
Industry Median: 1.7
vs FRA:RPD: 3.83
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Royalty Pharma 5-Year Yield-on-Cost % Related Terms
FRA:RPD vs ROIV, MRNA, BNTX: 5-Year Yield-on-Cost % Comparison
For the Biotechnology subindustry, Royalty Pharma's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Royalty Pharma's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Royalty Pharma is calculated as
Royalty Pharma (FRA:RPD) has a 5-Year Yield-on-Cost % of 3.83 as of Jul. 12, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Royalty Pharma and its competitors. This is 24% below median its historical median of 5.04. Over the past decade, Royalty Pharma's 5-Year Yield-on-Cost % has ranged from 0.74 to 7.94. According to the industry distribution chart, Royalty Pharma ranks #47 out of 153 companies in the Biotechnology industry, placing it in the top 30.7%.
Is Royalty Pharma's 5-Year Yield-on-Cost % too high?
Royalty Pharma's current 5-Year Yield-on-Cost % of 3.83 is 24% below median its 10-year median of 5.04. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 7.94. The Biotechnology industry median 5-Year Yield-on-Cost % is 1.70. Royalty Pharma's value of 3.83 is 125.3% above this industry median. Based on the distribution chart, Royalty Pharma ranks #47 out of 153 companies in the Biotechnology industry, which is above the industry midpoint. 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 5-Year Yield-on-Cost % compare to ROIV and MRNA?
According to the Biotechnology industry distribution chart, Royalty Pharma ranks #47 out of 153 companies for 5-Year Yield-on-Cost %. This puts Royalty Pharma in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.70. Royalty Pharma's value of 3.83 is 125.3% above this benchmark. Historically, Royalty Pharma's own 5-Year Yield-on-Cost % has ranged from 0.74 to 7.94 over the past decade. While the company's 10-year median is 5.04 vs. the industry median of 1.70, Royalty Pharma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Biotechnology company?
The median 5-Year Yield-on-Cost % among Biotechnology companies is 1.70, based on 153 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royalty Pharma's current 5-Year Yield-on-Cost % of 3.83 is 125.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Royalty Pharma and its competitors. For the Biotechnology industry, the median 5-Year Yield-on-Cost % is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royalty Pharma's current 5-Year Yield-on-Cost % is 3.83, which is 24% below median its own 10-year median of 5.04. 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 5-Year Yield-on-Cost % is 3.83, which is 24% below median its 10-year median of 5.04 and 125.3% above the Biotechnology industry median of 1.70. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Royalty Pharma (FRA:RPD), the current 5-Year Yield-on-Cost % is 3.83 as of Jul. 12, 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:
5-Year Yield-on-Cost %: 3.83 (24% below median its 10-year median of 5.04)
GF Value™: €32.06 vs. price of €48.51 (51.3% above fair value)
Industry Position: 125.3% above the Biotechnology median (#47 of 153)
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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