Royal Bank of Canada

LSE:0QKU Stock Report

Market Cap: US$170.3b

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 ($120.13) is trading below our estimate of fair value ($175.92)

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$15.91b
Market CapCA$246.08b

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 Average7.8x
HSBA HSBC Holdings
7.6x-1.2%UK£138.3b
BARC Barclays
9x10.9%UK£38.3b
LLOY Lloyds Banking Group
7.4x4.0%UK£32.9b
NWG NatWest Group
7.3x1.1%UK£32.4b
0QKU Royal Bank of Canada
15.5x3.0%US$246.1b

Price-To-Earnings vs Peers: 0QKU is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (7.8x).

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. 7.8xNo. of Companies42PE0612182430+
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 (7.8x).

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 Ratio6.6x

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 (6.6x).

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$120.13
US$130.46
+8.6%
7.8%US$140.49US$97.64n/a14
Dec ’25US$125.75
US$129.69
+3.1%
7.7%US$140.05US$98.82n/a14
Nov ’25US$121.63
US$121.33
-0.2%
8.2%US$133.99US$99.60n/a15
Oct ’25US$123.44
US$124.26
+0.7%
8.0%US$137.82US$102.44n/a15
Sep ’25US$119.97
US$123.39
+2.9%
7.3%US$136.45US$103.08n/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$75.42US$120.5513
Dec ’24US$91.14
US$96.13
+5.5%
8.0%US$107.44US$74.09US$125.7514
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 10:15
End of Day Share Price 2025/01/03 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