Royalty Pharma (RPRX) Valuation Check After Strong Portfolio Growth And 2026 Guidance Update

Royalty Pharma (RPRX) shares are in focus after the company reported double digit portfolio receipts growth, better than expected adjusted earnings, and issued 2026 guidance along with plans for further capital returns.

See our latest analysis for Royalty Pharma.

The latest earnings and guidance arrive after a strong run in the share price, with a 30 day share price return of 12.38% and a 1 year total shareholder return of 43.17%. This suggests momentum has been building as the market reassesses growth prospects and risk around its royalty portfolio.

If this kind of royalty focused model has your attention, it can be useful to see what else is moving. A useful place to start is our 25 healthcare AI stocks as a curated set of ideas to review next.

With Royalty Pharma trading at US$45.19, showing an intrinsic discount estimate of around 75% and sitting below the average analyst target, you have to ask: is there still value here, or is the market already baking in future growth?

Most Popular Narrative: 1.7% Undervalued

Royalty Pharma’s most followed valuation story puts fair value close to the current $45.19 share price, suggesting only a small gap between narrative and market.

The robust scientific pipeline, driven by advancements in biologics, gene therapies, and next-generation medicines like daraxonrasib, creates high-value assets that can enter into blockbuster status. Participation in these early, high-impact assets (as in the Revolution Medicines deal) positions Royalty Pharma for long-duration, high-growth royalty streams, directly benefitting long-term revenue and earnings.

Read the complete narrative.

Want to see how this royalty stream story turns into a fair value estimate? The narrative leans on steady revenue expansion, changing margins, and a richer future earnings multiple. Curious which assumptions do the heavy lifting in that calculation?

Result: Fair Value of $45.98 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this depends on key risks, including the Vertex royalty dispute and pressure on drug pricing that could reduce future royalty pools and cash flows.

Find out about the key risks to this Royalty Pharma narrative.

Build Your Own Royalty Pharma Narrative

If you see the data differently or want to stress test your own assumptions, you can spin up a custom Royalty Pharma view in just a few minutes. Do it your way

A great starting point for your Royalty Pharma research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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If you are serious about building a stronger portfolio, do not stop at one stock. Use the screeners below to quickly surface fresh ideas worth your time.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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