Royal Bank of Canada

DB:RYC Stock Report

Market Cap: €143.4b

Royal Bank of Canada Valuation

Is RYC 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 RYC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€182.97
Fair Value
44.3% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: RYC (€101.84) is trading below our estimate of fair value (€182.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RYC. This is calculated by dividing RYC's market cap by their current earnings.
What is RYC's PE Ratio?
PE Ratio13x
EarningsCA$17.40b
Market CapCA$224.61b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RYC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
CBK Commerzbank
10.1x9.7%€27.1b
PCZ ProCredit Holding
5.6x12.2%€586.6m
600036 China Merchants Bank
7.5x5.6%CN¥1.1t
CBA Commonwealth Bank of Australia
24.6x4.0%AU$242.1b
RYC Royal Bank of Canada
13x4.4%€224.6b

Price-To-Earnings vs Peers: RYC is expensive based on its Price-To-Earnings Ratio (13x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does RYC's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RYC 13.0xIndustry Avg. 8.5xNo. of Companies51PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RYC is expensive based on its Price-To-Earnings Ratio (13x) compared to the European Banks industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is RYC'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.

RYC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio12.7x

Price-To-Earnings vs Fair Ratio: RYC is expensive based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (12.7x).

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 RYC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€101.84
€119.29
+17.1%
5.8%€127.03€100.72n/a15
Mar ’26€109.84
€124.56
+13.4%
5.5%€131.98€104.65n/a15
Feb ’26€117.96
€124.28
+5.4%
5.5%€132.68€104.16n/a15
Jan ’26€115.22
€124.26
+7.8%
7.8%€133.82€93.01n/a14
Dec ’25€117.86
€123.79
+5.0%
7.7%€133.68€94.32n/a14
Nov ’25€111.92
€111.96
+0.04%
8.2%€123.64€91.91n/a15
Oct ’25€111.66
€112.79
+1.0%
8.0%€125.10€92.99n/a15
Sep ’25€107.34
€111.41
+3.8%
7.3%€123.20€93.07n/a15
Aug ’25€101.98
€103.45
+1.4%
6.5%€112.03€89.35n/a15
Jul ’25€98.30
€103.66
+5.5%
6.5%€113.28€90.35n/a15
Jun ’25€99.20
€102.92
+3.7%
5.8%€109.59€90.65n/a16
May ’25€90.80
€98.03
+8.0%
3.8%€104.16€91.22n/a15
Apr ’25€92.97
€97.45
+4.8%
3.7%€104.02€91.11n/a15
Mar ’25€89.62
€95.64
+6.7%
8.4%€105.49€68.06€109.8415
Feb ’25€90.03
€94.21
+4.6%
8.6%€101.15€68.34€117.9614
Jan ’25€91.24
€92.61
+1.5%
8.9%€101.35€68.48€115.2213
Dec ’24€83.56
€88.39
+5.8%
8.0%€98.79€68.13€117.8614
Nov ’24€75.34
€89.19
+18.4%
7.8%€96.76€68.14€111.9214
Oct ’24€82.96
€91.65
+10.5%
8.0%€98.89€69.64€111.6614
Sep ’24€82.90
€91.50
+10.4%
3.9%€96.08€85.26€107.3416
Aug ’24€89.82
€93.38
+4.0%
4.0%€98.16€83.74€101.9817
Jul ’24€86.83
€93.94
+8.2%
4.2%€99.03€84.49€98.3017
Jun ’24€83.45
€93.94
+12.6%
4.5%€99.94€84.09€99.2017
May ’24€88.88
€96.21
+8.2%
4.3%€102.20€88.76€90.8017
Apr ’24€86.79
€97.06
+11.8%
4.3%€102.89€89.35€92.9716
Mar ’24€95.31
€99.86
+4.8%
4.8%€111.05€91.05€89.6216
Analyst Price Target
Consensus Narrative from 15 Analysts
€118.35
Fair Value
13.9% undervalued intrinsic discount
15
Number of Analysts

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 Analysis2025/03/12 06:07
End of Day Share Price 2025/03/12 00:00
Earnings2025/01/31
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.

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 Github.

Analyst Sources

Royal Bank of Canada is covered by 33 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