Is Royalty Pharma Plc overvalued or undervalued?

As of 14 November 2025, the valuation grade for Royalty Pharma Plc moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 2.84, and an EV to EBITDA of 13.43. In comparison, its peer Incyte Corp. has a significantly higher P/E ratio of 22.95, suggesting that Royalty Pharma may offer a more attractive entry point for investors.
Despite recent strong performance, with a year-to-date return of 53.51% compared to the S&P 500's 14.49%, the company's long-term returns have lagged, particularly over the past three and five years. This contrast highlights the potential for recovery and growth in the near term, supporting the view that Royalty Pharma is fairly valued at present.