Royal Bank of Canada (RY) fair value: what the stock is really worth
As of Oct 30, 2026: fair value (intrinsic value) of Royal Bank of Canada stock $133, price $203, that is 34.6% below the price, quality 65 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range $71.38 – $216.58 · fair‑value band $101.79 – $190.47 · the $202.98 price screens above the $132.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Royal Bank of Canada operates as a diversified financial service company worldwide. Its Personal Banking segment offers home equity financing, personal lending, chequing and savings accounts, private banking, auto financing, mutual funds, GICs, credit cards, and payment products and solutions.
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The company's Commercial Banking segments provides lending, deposit and transaction banking products and services.
Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other solutions to clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners.
The company's Insurance segment offers life, health, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; digital platforms; and independent brokers and partners, as well as client-led advice and solutions.
The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments.
The company was founded in 1864 and is based in Toronto, Canada.
Stock analysis
Royal Bank of Canada (RY) currently trades at $202.98, while our model-based Fair Value estimate is $132.82, 34.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of $131.44 per share, and 0 of the 6 models we run sit above the $202.98 price.
Bear case: the Asset-Based group reads lowest at $54.34, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $101.79 (bear) to $190.47 (bull), the price of $202.98 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Royal Bank of Canada reported revenue of $137B in FY2025 versus $57.7B in FY2021, a compound +24.2%/yr. Reported net income was $20.4B in FY2025, compounding +6.1%/yr from FY2021.
Key figures
Market cap $277B Mega · P/E ratio 17.7 · P/S ratio 2.63 · EPS (TTM) $11.44 · Dividend yield 3.2% · Net margin 14.8% · Return on equity 16.2% · Return on assets (EBIT) 1.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 73 out of 100 (medium confidence).
What moves the price
The share trades about 6% below its 52-week high and 42% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −35%, RY screens richer than that median.
Fair Value models
Bear$101.79Fair Value $132.82Bull$190.47
Price $202.98 · Downside -34.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($4.86 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+2.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+27.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.6%
Start year 2020 (pandemic). Over 10 years: +26.2% a year
Revenue growth 32 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+13.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.1%
Dividend (yield on the price)3.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 10.1% / 27.3%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.24% → 19%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−4.3%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−21.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −6.5% a year for the price and −23.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Diversified banking, wealth management and capital markets deliver consistent results and synergies, yet limited innovation signals restrict the durability of its moderate moat.
Main risk: Repeated fines from bodies such as FINTRAC for AML shortcomings and the FCAC for inaccurate credit card statements could raise compliance costs and require ongoing operational adjustments across RBC's banking activities.
Bull case: RBC could further integrate its leading AI systems into compliance and risk monitoring to reduce errors and satisfy regulators more effectively while maintaining service breadth.
Bear case: Escalating regulatory demands might necessitate extensive system upgrades or activity restrictions that divert resources from core lending, wealth and capital markets operations.
RBC reported an ROE near 18 percent in its latest quarter while holding a strong CET1 ratio and returning billions to shareholders. The diversified mix of banking, wealth management and capital markets has driven consistent results and integration synergies from recent deals. With Bank of Canada rate expectations shifting, will fee-based growth and efficiency improvements more than offset any pressure on net interest margins?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Diversified · 46 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside−34.6% · Bottom 25%
Profitability
Return on equity (12 months)16.2% · Top 25%
Return on assets0.9% · Above median
Net margin (12 months)33.9% · Above median
Operating margin (12 months)46.4% · Above median
Growth and dividend
Revenue growth (quarter YoY)8.9% · Above median
Dividend yield (12 months)3.2% · Above median
Balance sheet
Debt / equity2.54× · Highest 25%
Valuation Multiplesvs Banks - Diversified median · lower = cheaper
P/E (12 months)17.7× · Priciest 25%
P/B1.99× · Priciest 25%
P/S (12 months)4.13× · Pricier than median
Price / free cash flow5.2× · Cheaper than median
EV/EBITDA18.9× · Pricier than median
PEG2.26× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)45· sector 36
PAST (return on equity)65· sector 47
HEALTH (low debt)0· sector 40
DIVIDEND (yield)65· sector 62
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Royal Bank of Canada Fair Value". https://www.fairvalue-calculator.com/stock/RY
Frequently asked questions
Is Royal Bank of Canada (RY) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of $132.82 versus a price of $202.98, about 35% lower (overvalued).
What is the fair value of RY?
Our model-based fair value for Royal Bank of Canada is $132.82 (as of Nov 1, 2026), built from audited fundamentals. The current price: $202.98.
What is the quality score of RY?
Royal Bank of Canada has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Royal Bank of Canada (RY)?
Our model-based price target is the fair value of $132.82 (as of Nov 1, 2026) from 6 valuation models. Cautious scenario $101.79, optimistic scenario $190.47. It is a calculation from audited fundamentals, not an analyst target.
What is the Royal Bank of Canada stock forecast for 2026?
Our models put fair value at $132.82, about 35% lower versus a price of $202.98 (overvalued). Cautious scenario $101.79, optimistic scenario $190.47. The calculation is refreshed regularly with new filings.
What is the revenue of Royal Bank of Canada (RY)?
Royal Bank of Canada reported trailing-twelve-month revenue of about $67.2B (latest available figure, as of Nov 1, 2026).
Does Royal Bank of Canada pay a dividend?
Royal Bank of Canada currently shows a dividend yield of 3.24% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Royal Bank of Canada (RY)?
For today's price to be fair in a discounted-cash-flow model, Royal Bank of Canada would have to grow free cash flow by -4.3 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +17.6 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of RY use?
Our models discount Royal Bank of Canada at 8.5 %: a base by market capitalisation (mega), damped by beta 0.91, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Royal Bank of Canada that is -4.3 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Royal Bank of Canada (RY) delivered so far?
Over the past 5 years revenue at Royal Bank of Canada grew +17.6 % a year. The price currently implies -4.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Royal Bank of Canada (RY) growing?
The median revenue growth in the sector is +9.6 % a year. That is the yardstick for the growth priced into Royal Bank of Canada (-4.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Royal Bank of Canada (RY)?
The free-cash-flow yield on the price is 26.32 %: that much free cash flow Royal Bank of Canada produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Royal Bank of Canada (RY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Royal Bank of Canada it is $132.82 per share (as of Nov 1, 2026), against a price of $202.98. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Royal Bank of Canada stock overvalued or undervalued in 2026?
As of Nov 1, 2026, RY trades above its calculated fair value: price $202.98, fair value $132.82, a gap of about −35% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RY?
No. The price is what the market pays today ($202.98); the fair value is what the company's own numbers justify ($132.82). For Royal Bank of Canada the two are $70.16 per share apart. That gap is exactly why we show both numbers side by side.
How much is Royal Bank of Canada worth?
The market values Royal Bank of Canada at about $277B (market capitalisation, as of Nov 1, 2026). Per share that is $202.98; our models calculate a fair value of $132.82 per share.
What do the bullish and bearish scenarios say about RY?
Our models span a range for Royal Bank of Canada: cautious scenario $101.79, base $132.82, optimistic $190.47 per share (as of Nov 1, 2026, price $202.98). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RY?
Royal Bank of Canada trades at a price-to-earnings ratio of 17.7 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $132.82 is built from several models across several years. Other multiples: PEG 2.3, P/B 2.0, P/S 4.1, EV/EBITDA 18.9.
What is the PEG ratio of RY?
The PEG ratio of Royal Bank of Canada is 2.26 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Royal Bank of Canada (RY)?
Balance-sheet figures for Royal Bank of Canada (as of Nov 1, 2026): return on equity 16.2%, debt of 2.54 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is RY from its 52-week high?
Royal Bank of Canada trades at $202.98, about 6% below its 52-week high of $216.58 and 42% above the low of $142.58 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of $132.82 is for.
Which stocks are comparable to Royal Bank of Canada?
From the same area (Financial Services) we also value JPMorgan Chase & Co, China Construction Bank Corporation, Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Royal Bank of Canada stock attractive at the current price?
The data as of Nov 1, 2026: price $202.98, calculated fair value $132.82 (−35%), Quality Score 65/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RY calculated?
We run Royal Bank of Canada through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $132.82, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.2 % above its aggregate fair value. Royal Bank of Canada itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Royal Bank of Canada (RY)?
The closing price on Oct 30, 2026 was $202.98. Our model-based fair value is $132.82, about 35% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Royal Bank of Canada right now?
The price sits above even our optimistic bull case ($190.47). The favourable scenario is already priced in. Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($101.79 to $190.47) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Royal Bank of Canada (RY) come from?
Earnings per share at Royal Bank of Canada grew +18.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +21.9 %, EBIT margin −3.9 %, tax rate +0.1 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Royal Bank of Canada
How large is the market capitalisation of Royal Bank of Canada (RY)?
The market capitalisation of Royal Bank of Canada is $277B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Royal Bank of Canada (RY)?
The price-to-sales ratio of Royal Bank of Canada is 2.63 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Royal Bank of Canada (RY)?
Earnings per share at Royal Bank of Canada are $11.44 (price ÷ EPS = P/E 17.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Royal Bank of Canada (RY)?
The dividend yield of Royal Bank of Canada is 3.2% (payout 57.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Royal Bank of Canada (RY)?
The net margin of Royal Bank of Canada is 14.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Royal Bank of Canada (RY)?
The return on equity (ROE) of Royal Bank of Canada is 16.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Royal Bank of Canada (RY)?
On an EBIT basis the return on assets of Royal Bank of Canada is 1.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Royal Bank of Canada (RY)?
The operating margin of Royal Bank of Canada is 46.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Royal Bank of Canada (RY)?
Revenue at Royal Bank of Canada is growing +8.9% versus a year earlier (3y avg +27.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Royal Bank of Canada (RY)?
Earnings per share at Royal Bank of Canada are growing +12.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Royal Bank of Canada (RY) carry?
The net debt of Royal Bank of Canada is $748B (fiscal year 2025, ≈ 14.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 1, 2026