RY Valuation

Royal Bank of Canada

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145.360

-0.49(-0.336%)1D

Overview
Forecast
Valuation
Earnings

RY Relative Valuation

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. If the market price exceeds this fair value range, RY is overvalued; if below, it's undervalued.

Historical Valuation

Royal Bank of Canada (RY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 13.59 is considered Overvalued compared with the five-year average of 11.68. The fair price of Royal Bank of Canada (RY) is between 120.23 to 138.61 according to relative valuation methord. Compared to the current price of 145.36 USD , Royal Bank of Canada is Overvalued By 4.87%.

Relative Value

Fair Zone

120.23-138.61

Current Price：145.36

4.87%

Overvalued

13.59

Trailing

Forward

0.00

EV/EBITDA

Royal Bank of Canada. (RY) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

NaN

EV/EBIT

Royal Bank of Canada. (RY) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

4.17

Royal Bank of Canada. (RY) has a current PS of 4.17. The 5-year average PS is 3.49. The thresholds are as follows: Strongly Undervalued below 2.81, Undervalued between 2.81 and 3.15, Fairly Valued between 3.82 and 3.15, Overvalued between 3.82 and 4.16, and Strongly Overvalued above 4.16. The current Forward PS of 4.17 falls within the Strongly Overvalued range.

0.00

P/OCF

Royal Bank of Canada. (RY) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

Royal Bank of Canada. (RY) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Royal Bank of Canada (RY) has a current Price-to-Book (P/B) ratio of 2.26. Compared to its 3-year average P/B ratio of 1.84 , the current P/B ratio is approximately 22.93% higher. Relative to its 5-year average P/B ratio of 1.89, the current P/B ratio is about 19.71% higher. Royal Bank of Canada (RY) has a Forward Free Cash Flow (FCF) yield of approximately -12.62%. Compared to its 3-year average FCF yield of -25.03%, the current FCF yield is approximately -49.58% lower. Relative to its 5-year average FCF yield of -19.24% , the current FCF yield is about -34.41% lower.

2.26

P/B

Median3y

1.84

Median5y

1.89

-12.62

FCF Yield

Median3y

-25.03

Median5y

-19.24

Competitors Valuation Multiple

The average P/S ratio for RY's competitors is 2.99, providing a benchmark for relative valuation. Royal Bank of Canada Corp (RY) exhibits a P/S ratio of 4.17, which is 39.24% above the industry average. Given its robust revenue growth of 14.77%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Toronto-Dominion Bank

Itau Unibanco Holding SA

2.07

-3.25%

112.40B

Performance Decomposition

Market capitalization of RY increased by 17.50% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 13.79B to 15.82B.

The secondary factor is the Margin Expansion, contributed 5.16%to the performance.

Overall, the performance of RY in the past 1 year is driven by Revenue Growth. Which is more sustainable.

14.77%

13.79B → 15.82B

Revenue Growth

5.16%

32.54 → 34.22

Margin Expansion

-2.43%

15.47 → 15.10

P/E Change

17.50%