Benign Growth For Royalty Pharma plc (NASDAQ:RPRX) Underpins Its Share Price
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 19x, you may consider Royalty Pharma plc (NASDAQ:RPRX) as an attractive investment with its 14x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Royalty Pharma certainly has been doing a good job lately as it’s been growing earnings more than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you’d be hoping this isn’t the case so…
