Royalty Pharma plc (RPRX) is overvalued and Vertex Pharmaceuticals Inc (VRTX) is overvalued.
Both trade above our estimate of their intrinsic value. VRTX is the closer of the two: -36%, against -49% for RPRX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $39.27; the price of $58.52 is 49% above that value, and 80% of that value comes from beyond year five.
Leak Score 34/100 on 7 of 12 signals
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $380.05; the price of $514.99 is 36% above that value, and 82% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | RPRX | VRTX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $58.52 | $514.99 |
| Intrinsic value | $39.27 | $380.05 |
| Margin of safety | -49% | -36% |
| Leak Score | 34/100 (7/12) | 65/100 (9/12) |
| Market cap | $33.7B | $130.5B |
| Revenue growth, 5 years | 2.3% | 14.2% |
| Operating margin | 62.3% | 39.5% |
| Net margin | 32.1% | 34.7% |
| Return on equity | 12.4% | 23.5% |
| Debt to equity | 1.31 | 0.10 |
| P/E | 31.1x | 30.0x |
| Forward P/E | 10.2x | 24.4x |
| P/B | 3.8x | 6.4x |
| Dividend yield | 1.8% | — |