Royal Bank of Canada

TSX:RY Stock Report

Market Cap: CA$245.4b

Royal Bank of Canada Valuation

Is RY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RY (CA$173.4) is trading below our estimate of fair value (CA$253.1)

Significantly Below Fair Value: RY is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RY?

Key metric: As RY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RY. This is calculated by dividing RY's market cap by their current earnings.
What is RY's PE Ratio?
PE Ratio15.4x
EarningsCA$15.91b
Market CapCA$245.36b

Price to Earnings Ratio vs Peers

How does RY's PE Ratio compare to its peers?

The above table shows the PE ratio for RY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
TD Toronto-Dominion Bank
15.8x14.5%CA$131.3b
BMO Bank of Montreal
14.6x8.1%CA$101.3b
CM Canadian Imperial Bank of Commerce
12.7x6.5%CA$87.2b
BNS Bank of Nova Scotia
13x8.6%CA$94.8b
RY Royal Bank of Canada
15.4x3.0%CA$245.4b

Price-To-Earnings vs Peers: RY is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does RY's PE Ratio compare vs other companies in the North American Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RY 15.4xIndustry Avg. 12.5xNo. of Companies84PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RY is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the North American Banks industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is RY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.4x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: RY is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (14x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$173.40
CA$185.71
+7.1%
7.8%CA$200.00CA$139.00n/a14
Dec ’25CA$176.16
CA$182.43
+3.6%
7.7%CA$197.00CA$139.00n/a14
Nov ’25CA$170.12
CA$169.33
-0.5%
8.2%CA$187.00CA$139.00n/a15
Oct ’25CA$167.08
CA$168.60
+0.9%
8.0%CA$187.00CA$139.00n/a15
Sep ’25CA$162.98
CA$166.40
+2.1%
7.3%CA$184.00CA$139.00n/a15
Aug ’25CA$152.37
CA$155.13
+1.8%
6.5%CA$168.00CA$134.00n/a15
Jul ’25CA$145.65
CA$153.74
+5.6%
6.5%CA$168.00CA$134.00n/a15
Jun ’25CA$148.98
CA$152.13
+2.1%
5.8%CA$162.00CA$134.00n/a16
May ’25CA$133.97
CA$144.00
+7.5%
3.8%CA$153.00CA$134.00n/a15
Apr ’25CA$136.08
CA$143.34
+5.3%
3.7%CA$153.00CA$134.00n/a15
Mar ’25CA$131.94
CA$140.53
+6.5%
8.4%CA$155.00CA$100.00n/a15
Feb ’25CA$131.49
CA$137.85
+4.8%
8.6%CA$148.00CA$100.00n/a14
Jan ’25CA$134.00
CA$135.23
+0.9%
8.9%CA$148.00CA$100.00n/a13
Dec ’24CA$122.94
CA$129.75
+5.5%
8.0%CA$145.00CA$100.00CA$176.1614
Nov ’24CA$111.27
CA$130.89
+17.6%
7.8%CA$142.00CA$100.00CA$170.1214
Oct ’24CA$118.70
CA$131.60
+10.9%
8.0%CA$142.00CA$100.00CA$167.0814
Sep ’24CA$122.85
CA$135.23
+10.1%
3.9%CA$142.00CA$126.00CA$162.9816
Aug ’24CA$129.67
CA$136.04
+4.9%
4.0%CA$143.00CA$122.00CA$152.3717
Jul ’24CA$126.52
CA$135.66
+7.2%
4.2%CA$143.00CA$122.00CA$145.6517
Jun ’24CA$121.59
CA$136.29
+12.1%
4.5%CA$145.00CA$122.00CA$148.9817
May ’24CA$134.37
CA$143.09
+6.5%
4.3%CA$152.00CA$132.00CA$133.9717
Apr ’24CA$129.25
CA$143.39
+10.9%
4.3%CA$152.00CA$132.00CA$136.0816
Mar ’24CA$133.62
CA$144.78
+8.3%
4.8%CA$161.00CA$132.00CA$131.9416
Feb ’24CA$136.49
CA$143.34
+5.0%
5.7%CA$164.00CA$130.00CA$131.4916
Jan ’24CA$127.30
CA$143.09
+12.4%
6.0%CA$164.00CA$126.00CA$134.0016
Dec ’23CA$134.67
CA$142.53
+5.8%
5.2%CA$153.00CA$126.00CA$122.9415

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 07:54
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/31
Annual Earnings2024/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Royal Bank of Canada is covered by 32 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark RosenAccountability Research Corporation
Stephen BiggarArgus Research Company
John AikenBarclays