Historical Valuation
Royal Bank of Canada (RY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 15.01 is considered Overvalued compared with the five-year average of 11.99. The fair price of Royal Bank of Canada (RY) is between 132.57 to 151.48 according to relative valuation methord. Compared to the current price of 169.79 USD , Royal Bank of Canada is Overvalued By 12.09%.
Relative Value
Fair Zone
132.57-151.48
Current Price：169.79
12.09%
Overvalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Royal Bank of Canada (RY) has a current Price-to-Book (P/B) ratio of 2.58. Compared to its 3-year average P/B ratio of 1.90 , the current P/B ratio is approximately 35.33% higher. Relative to its 5-year average P/B ratio of 1.93, the current P/B ratio is about 33.58% higher. Royal Bank of Canada (RY) has a Forward Free Cash Flow (FCF) yield of approximately -16.17%. Compared to its 3-year average FCF yield of -21.64%, the current FCF yield is approximately -25.28% lower. Relative to its 5-year average FCF yield of -20.82% , the current FCF yield is about -22.35% lower.
P/B
Median3y
1.90
Median5y
1.93
FCF Yield
Median3y
-21.64
Median5y
-20.82
Competitors Valuation Multiple
AI Analysis for RY
The average P/S ratio for RY competitors is 3.27, providing a benchmark for relative valuation. Royal Bank of Canada Corp (RY.N) exhibits a P/S ratio of 4.68, which is 42.92% above the industry average. Given its robust revenue growth of 18.40%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for RY
1Y
3Y
5Y
Market capitalization of RY increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of RY in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is RY currently overvalued or undervalued?
Royal Bank of Canada (RY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 15.01 is considered Overvalued compared with the five-year average of 11.99. The fair price of Royal Bank of Canada (RY) is between 132.57 to 151.48 according to relative valuation methord. Compared to the current price of 169.79 USD , Royal Bank of Canada is Overvalued By 12.09% .
What is Royal Bank of Canada (RY) fair value?
RY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Royal Bank of Canada (RY) is between 132.57 to 151.48 according to relative valuation methord.
How does RY's valuation metrics compare to the industry average?
The average P/S ratio for RY's competitors is 3.27, providing a benchmark for relative valuation. Royal Bank of Canada Corp (RY) exhibits a P/S ratio of 4.68, which is 42.92% above the industry average. Given its robust revenue growth of 18.40%, this premium appears unsustainable.
What is the current P/B ratio for Royal Bank of Canada (RY) as of Jan 09 2026?
As of Jan 09 2026, Royal Bank of Canada (RY) has a P/B ratio of 2.58. This indicates that the market values RY at 2.58 times its book value.
What is the current FCF Yield for Royal Bank of Canada (RY) as of Jan 09 2026?
As of Jan 09 2026, Royal Bank of Canada (RY) has a FCF Yield of -16.17%. This means that for every dollar of Royal Bank of Canada’s market capitalization, the company generates -16.17 cents in free cash flow.
What is the current Forward P/E ratio for Royal Bank of Canada (RY) as of Jan 09 2026?
As of Jan 09 2026, Royal Bank of Canada (RY) has a Forward P/E ratio of 15.01. This means the market is willing to pay $15.01 for every dollar of Royal Bank of Canada’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Royal Bank of Canada (RY) as of Jan 09 2026?
As of Jan 09 2026, Royal Bank of Canada (RY) has a Forward P/S ratio of 4.68. This means the market is valuing RY at $4.68 for every dollar of expected revenue over the next 12 months.