RPRX
Royalty Pharma plc
$61.41
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.9% below fair value
You pay
$61.41
Bear
$67.40
Fair
$78.64
Bull
$89.87
Bear
$67.40
+9.8%
$5.62 × 12x P/E
Fair
$78.64
+28.1%
$5.62 × 14x P/E
Bull
$89.87
+46.3%
$5.62 × 16x P/E
Adjust Assumptions
14.0x
5.62$
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
10.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$62.67
Divergence from AlphaVal
25%
Summary
Applying a 14x P/E to adjusted EPS of $5.62, the base-case value is $78.64 per share. DDM cross-check: $28.15.
Warnings
The company's reported profits differ from official accounting profits by 212%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $28.15 (below our primary estimate by 64%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $62.67 (from 11 analysts). Our estimate is 25% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples