Royalty Pharma

OVERVALUEDRPRX · NASDAQ · Healthcare
RPRX·NASDAQ·Healthcare
OVERVALUED
Royalty Pharma
15.9%downside
MARKET PRICE
$56.43
FAIR PRICE
$47.44
MARGIN
$8.99
UNDERVALUEDFAIROVERVALUED
P/E RATIO
44.0x
DIV. YIELD
1.61%
ROE
10.6%
MARKET CAP
$24B
fairpriceindex.com

FAIR PRICE VALUATION

15.9%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$56.43

FAIR PRICE

$47.44

MARGIN

$8.99

UNDERVALUEDFAIROVERVALUED

COMMUNITY BUY ZONE

UNLOCKS AT 10

Where does the market buy RPRX?

No one has priced RPRX yet — be the first. Every investor sets the maximum price they'd still buy at; together that maps the community buy zone.

COMMUNITY MEDIAN

▓▓▓▓▓

BUYERS AT TODAY'S PRICE

▓▓ %

0/10 INVESTORS · 10 MORE TO UNLOCK

P/E Ratio

44.0x

What is P/E? →

Div. Yield

1.61%

ROE

10.6%

Average

Market Cap

$24B

Large-cap

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FPI RATING

6.4/ 10

Strong profitability and low debt levels, but below-average fundamental quality.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$37.95CONSERVATIVE ENTRY
$47.44FAIR PRICE
$56.43MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$37.95

Fair price × 0.80

DISTANCE

32.7%

Price to entry level

At the current price of $56.43, RPRX trades 32.7% above the conservative entry level of $37.95. This entry level represents a 20% margin of safety below the calculated fair price of $47.44 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

SYNCING FEED

P/E RATIO HISTORY

SYNCING FEED

METHODOLOGY

How we calculate RPRX's fair price

Royalty Pharma's fair price of $47.44 is derived from a blended model that combines DCF analysis (50%), relative valuation against Healthcare peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $56.43, RPRX trades 15.9% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting RPRX's risk profile.

RELATIVE · 30%

Comparing RPRX's valuation multiples against Healthcare peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for RPRX, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate RPRX's fair value with your own inputs.

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FAQ

What is the fair price of RPRX?+

Based on our blended model combining DCF analysis (50%), relative valuation against Healthcare peers (30%), and analyst consensus (20%), the fair price for Royalty Pharma is $47.44. At the current market price of $56.43, RPRX trades 15.9% above its calculated fair value.

Is RPRX overvalued or undervalued?+

Royalty Pharma is currently overvalued based on our valuation model. The stock trades at $56.43, which is 15.9% above the fair price of $47.44. The P/E ratio of 44.0x is a key metric in the valuation.

What is the margin of safety for RPRX?+

With a 20% margin of safety applied to the fair price of $47.44, the conservative entry level for RPRX is $37.95. At the current market price of $56.43, the stock trades 32.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is RPRX's fair price updated?+

We update fair price calculations for RPRX daily after market close. The current fair price of $47.44 incorporates the latest market data and sector multiples.

What factors affect RPRX's fair price calculation?+

RPRX's fair price of $47.44 is derived from DCF analysis (50% weight), relative valuation against Healthcare peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 44.0x, ROE of 10.6%, and dividend yield of 1.61%.

Is RPRX a good buy right now?+

At $56.43, RPRX trades 15.9% above our fair value estimate of $47.44. The stock is currently overvalued. ROE stands at 10.6% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does RPRX pay dividends?+

RPRX has a dividend yield of 1.61%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.