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Royal Bank of Canada (0QKU) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Royal Bank of Canada $346, price $196, upside +77.0%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Broad data
Sep 24, 2026
Royal Bank of Canada
0QKU · LSEClearly undervaluedStrong Fair Value upside, but quality is only moderate.
✓Fair value $346.04 · Strongly undervalued (+77.0%)
!Quality 59/100
✓Healthy Growth (revenue 5y +26.2 %/yr)
✓Highly profitable · 33.7% net margin (TTM)
✓generates free cash flow
✓3.3% dividend yield · Sustainable
✓Wide moat 73/100
What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $41.26 – $217.35 · fair‑value band $242.23 – $449.85 · the $195.52 price screens below the $346.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
Company profile
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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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. 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 (0QKU) currently trades at $195.52, while our model-based Fair Value estimate is $346.04, implying the stock looks roughly 43.5% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $728.21 per share, and 21 of the 26 models we run sit above the $195.52 price.
Bear case: the Asset-Based group reads lowest at $64.75, and 5 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $242.23 (bear) to $449.85 (bull), the price of $195.52 sits below 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 59/100 (solid quality).
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 $50.4B in FY2021, a compound +28.5%/yr. Reported net income was $20.4B in FY2025, compounding +6.6%/yr from FY2021.
Key figures
Market cap $197B · P/E ratio 0.2 · P/S ratio 0.04 · EPS (TTM) $8.81 · Dividend yield 3.3% · Net margin 14.8% · Return on equity 16.2% · Return on assets (EBIT) 1.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 54 out of 100 (low confidence).
What moves the price
The share trades about 10% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
Fair Value models
Bear $242.23
Fair Value $346.04
Bull $449.85
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then ($2.26 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.
Evidence ⓘEvidence = 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.
Highest evidence
Residual Income
$94.34
$118.73
$172.79
75
FCF DCF
$744.73
$1,284
$2,660
73
5Y EBITDA Exit
$374.40
$590.58
$874.88
72
All 26 models by family
DCF Models
FCF DCF
$744.73
$1,284
$2,660
73
Owner Earnings
$761.01
$1,547
$3,048
69
5Y Revenue Exit
$360.91
$560.26
$837.66
69
5Y EBITDA Exit
$374.40
$590.58
$874.88
72
5Y P/E Exit
$386.45
$623.22
$902.43
68
10Y Revenue Exit
$474.12
$728.21
$1,081
64
10Y EBITDA Exit
$489.24
$751.47
$1,158
65
10Y P/E Exit
$497.38
$772.24
$1,182
61
Earnings-Based
Graham-Dodd
$96.20
$602.02
$840.77
63
Lynch FV
$173.41
$247.72
$322.04
61
PEG = 1.0
$173.41
$247.72
$322.04
57
EPV
$154.39
$174.70
$192.23
70
Dividend Discount
Gordon GGM
$53.70
$107.00
$162.03
67
DDM Multi-Stage
$53.70
$92.47
$112.95
67
Multiples
P/E Multiple
$212.21
$282.95
$353.69
63
P/S Multiple
$178.94
$238.59
$298.24
58
P/B Multiple
$180.38
$240.51
$300.63
55
EV/EBIT
$266.33
$346.53
$426.73
63
EV/EBITDA
$219.81
$284.50
$349.20
64
EV/Revenue
$187.91
$257.42
$326.93
51
Asset-Based
NCAV (Graham)
$48.32
$64.75
$96.64
51
Growth DCF
Growth DCF
$718.91
$1,406
$2,531
72
Rev-Margin DCF
$360.91
$565.00
$826.80
69
Economic Profit
Residual Income
$94.34
$118.73
$172.79
75
ROIC Compounder
$180.39
$245.19
$334.80
70
Growth Earnings
Growth-Adj P/E
$242.23
$346.04
$449.85
67
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Set up alert →Quality Score breakdown
Overall quality
59/100
Of which business quality 52 · Market factors (momentum, volatility) 71
Profitability
30
Margins and returns on capital today
Quality Growth
44
Are margins and returns improving?
Cashflow
63
Earnings quality: real cash, not paper profit
Fin. Strength
27
Balance sheet, leverage, solvency risk
Investment
74
Disciplined investing over empire-building
Low Volatility
83
Calm price path (market factor)
Momentum
63
Price trend over the last 3–12 months (market factor)
52W Momentum
73
Distance to the 52-week high (market factor)
Net Issuance
100
Share count: buybacks or dilution?
Revenue & earnings trend
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
+153.8%
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.
+41.5%
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.
+26.2%
Start year 2020 (pandemic). Over 10 years: +14.9% a year
Revenue growth 13 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.
+13.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+14.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.9%
Dividend (yield on the price)3.3%
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.18.3% vs 11.7%, picking up
2025 sits 83% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
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).
less than -40 %
Yearly growth needed for the next five years to justify today's price.
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.
−9.4%
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 −11.5% a year for the forecasts.
Forecast 2026 (sales)−47.9%
Forecast 2027 (sales)+4.6%
Projected 2028 (sales)+4.3%
Projected 2029 (sales)+4.0%
Projected 2030 (sales)+3.6%
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Values & ESG
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None of the checked exposures detected
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Frequently asked questions
Is Royal Bank of Canada (0QKU) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $346.04 versus a price of $195.52, about +77% upside (undervalued).
What is the fair value of 0QKU?
Our model-based fair value for Royal Bank of Canada is $346.04 (as of Sep 24, 2026), built from audited fundamentals. The current price: $195.52.
What is the quality score of 0QKU?
Royal Bank of Canada has a Quality Score of 59/100. 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 (0QKU)?
Our model-based price target is the fair value of $346.04 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario $242.23, optimistic scenario $449.85. 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 $346.04, about +77% upside versus a price of $195.52 (undervalued). Cautious scenario $242.23, optimistic scenario $449.85. The calculation is refreshed regularly with new filings.
What is the revenue of Royal Bank of Canada (0QKU)?
Royal Bank of Canada reported trailing-twelve-month revenue of about $65.7B (latest available figure, as of Sep 24, 2026).
Does Royal Bank of Canada pay a dividend?
Royal Bank of Canada currently shows a dividend yield of about 3.25% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Royal Bank of Canada (0QKU)?
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 less than minus 40 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +26.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0QKU use?
Our models discount Royal Bank of Canada at 10.1 %: a base by market capitalisation (unknown), damped by beta 0.93, country premium for United Kingdom. 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 less than minus 40 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Royal Bank of Canada (0QKU) delivered so far?
Over the past 5 years revenue at Royal Bank of Canada grew +26.2 % a year. The price currently implies less than minus 40 % 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.
What is the free cash flow yield of Royal Bank of Canada (0QKU)?
The free-cash-flow yield on the price is 9.87 %: that much free cash flow Royal Bank of Canada produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), 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 (0QKU)?
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 $346.04 per share (as of Sep 24, 2026), against a price of $195.52. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Royal Bank of Canada stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0QKU trades below its calculated fair value: price $195.52, fair value $346.04, a gap of about +77% (undervalued). 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 0QKU?
No. The price is what the market pays today ($195.52); the fair value is what the company's own numbers justify ($346.04). For Royal Bank of Canada the two are $150.52 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 $197B (market capitalisation, as of Sep 24, 2026). Per share that is $195.52; our models calculate a fair value of $346.04 per share.
What do the bullish and bearish scenarios say about 0QKU?
Our models span a range for Royal Bank of Canada: cautious scenario $242.23, base $346.04, optimistic $449.85 per share (as of Sep 24, 2026, price $195.52). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 0QKU from its 52-week high?
Royal Bank of Canada trades at $195.52, about 10% below its 52-week high of $217.35 and 38% above the low of $141.58 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $346.04 is for.
Is Royal Bank of Canada stock attractive at the current price?
The data as of Sep 24, 2026: price $195.52, calculated fair value $346.04 (+77%), Quality Score 59/100, from 26 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 0QKU calculated?
We run Royal Bank of Canada through 26 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 $346.04, 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 14.5 % above its aggregate fair value. Royal Bank of Canada currently trades 43 % below its own fair value, and the market average says nothing about that. 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 (0QKU)?
The closing price on Oct 2, 2026 was $195.52. Our model-based fair value is $346.04, about +77% upside (undervalued). 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 is below even our cautious bear case ($242.23). The market is more pessimistic than our downside scenario. Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($242.23 to $449.85) leaves room in how you read the outcome.
Where does the earnings growth of Royal Bank of Canada (0QKU) come from?
Earnings per share at Royal Bank of Canada grew +8.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.7 %, EBIT margin −2.1 %, tax rate +0.4 %, residual (interest, one-offs) −1.2 %. 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 (0QKU)?
The market capitalisation of Royal Bank of Canada is $197B. 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/E ratio of Royal Bank of Canada (0QKU)?
The price-to-earnings ratio of Royal Bank of Canada is 0.2 (as of Jul 29, 2026). Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of Royal Bank of Canada (0QKU)?
The price-to-sales ratio of Royal Bank of Canada is 0.04 (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 (0QKU)?
Earnings per share at Royal Bank of Canada are $8.81 (price ÷ EPS = P/E 0.2). 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 (0QKU)?
The dividend yield of Royal Bank of Canada is 3.3% (payout 72.2%). 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 (0QKU)?
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 (0QKU)?
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 (0QKU)?
On an EBIT basis the return on assets of Royal Bank of Canada is 1.3% (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 (0QKU)?
The operating margin of Royal Bank of Canada is 45.3% (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 (0QKU)?
Revenue at Royal Bank of Canada is growing +16.1% versus a year earlier (3y avg +41.5%). 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 (0QKU)?
Earnings per share at Royal Bank of Canada are growing +27.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Royal Bank of Canada (0QKU) carry?
The net debt of Royal Bank of Canada is $313B (fiscal year 2025, ≈ 16.1 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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