Royal Bank of Canada

LSE:0QKU Stock Report

Market Cap: US$176.7b

Royal Bank of Canada Valuation

Is 0QKU 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 0QKU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0QKU ($124.75) is trading below our estimate of fair value ($180.73)

Significantly Below Fair Value: 0QKU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0QKU?

Key metric: As 0QKU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0QKU. This is calculated by dividing 0QKU's market cap by their current earnings.
What is 0QKU's PE Ratio?
PE Ratio15.5x
EarningsCA$15.90b
Market CapCA$247.12b

Price to Earnings Ratio vs Peers

How does 0QKU's PE Ratio compare to its peers?

The above table shows the PE ratio for 0QKU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.7x
HSBA HSBC Holdings
7.2x-1.4%UK£130.2b
BARC Barclays
9x10.8%UK£38.0b
LLOY Lloyds Banking Group
7.4x4.2%UK£33.1b
NWG NatWest Group
7.1x0.3%UK£31.7b
0QKU Royal Bank of Canada
15.5x2.1%US$247.1b

Price-To-Earnings vs Peers: 0QKU is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

How does 0QKU's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0QKU 15.5xIndustry Avg. 7.3xNo. of Companies47PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0QKU is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0QKU'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.

0QKU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: 0QKU is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

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 0QKU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$124.77
US$127.84
+2.5%
8.4%US$139.60US$95.93n/a14
Nov ’25US$121.63
US$121.09
-0.4%
8.7%US$133.99US$96.01n/a15
Oct ’25US$123.44
US$124.01
+0.5%
8.5%US$137.82US$98.76n/a15
Sep ’25US$119.97
US$123.15
+2.6%
7.8%US$136.45US$99.37n/a15
Aug ’25US$109.74
US$112.21
+2.3%
6.5%US$121.52US$96.92n/a15
Jul ’25US$106.59
US$112.00
+5.1%
6.5%US$122.39US$97.62n/a15
Jun ’25US$108.13
US$111.65
+3.3%
5.8%US$118.89US$98.34n/a16
May ’25US$96.87
US$106.25
+9.7%
3.8%US$112.89US$98.87n/a15
Apr ’25US$101.16
US$105.31
+4.1%
3.7%US$112.41US$98.45n/a15
Mar ’25US$97.70
US$103.65
+6.1%
8.4%US$114.32US$73.76n/a15
Feb ’25US$97.96
US$102.64
+4.8%
8.6%US$110.19US$74.46n/a14
Jan ’25US$101.24
US$101.99
+0.7%
8.9%US$111.62US$75.42n/a13
Dec ’24US$91.14
US$96.13
+5.5%
8.0%US$107.44US$74.09n/a14
Nov ’24US$79.94
US$94.69
+18.4%
7.8%US$102.73US$72.34US$121.6314
Oct ’24US$87.89
US$96.89
+10.2%
8.0%US$104.55US$73.62US$123.4414
Sep ’24US$90.23
US$99.93
+10.8%
3.9%US$104.93US$93.10US$119.9716
Aug ’24US$97.23
US$103.30
+6.2%
4.0%US$108.58US$92.64US$109.7417
Jul ’24US$95.73
US$102.77
+7.4%
4.2%US$108.33US$92.42US$106.5917
Jun ’24US$90.97
US$100.39
+10.4%
4.5%US$106.81US$89.87US$108.1317
May ’24US$98.77
US$105.69
+7.0%
4.3%US$112.27US$97.50US$96.8717
Apr ’24US$95.35
US$104.55
+9.6%
4.3%US$110.83US$96.24US$101.1616
Mar ’24US$98.35
US$106.47
+8.3%
4.8%US$118.41US$97.08US$97.7016
Feb ’24US$101.97
US$107.12
+5.0%
5.7%US$122.56US$97.15US$97.9616
Jan ’24US$95.06
US$105.09
+10.5%
6.0%US$120.44US$92.54US$101.2416
Dec ’23US$99.92
US$106.11
+6.2%
5.2%US$113.91US$93.80US$91.1415
Nov ’23US$92.56
US$102.35
+10.6%
4.7%US$109.53US$91.77US$79.9415

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

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