Royal Bank of Canada
Royal Bank of Canada is a diversified financial services company that provides personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. Through RBC Royal Bank and related business segments, the company serves individuals, businesses, institutional clients, and public-sector organizations across Canada and in selected international markets. Its product range includes deposit accounts, lending, credit cards, payments, advisory services, investment solutions, asset management, and insurance products. Royal Bank of Canada also plays a significant role in capital markets through financing, trading, underwriting, and research services that support corporate and institutional clients. Headquartered in Toronto, Canada, Royal Bank of Canada is one of the country’s largest financial institutions and a major participant in the broader North American banking and financial services industry.
$197.80
+$1.12 (+0.57%)
EOD Oct 16, 2026
30.62% net margin is above average for a financial institution, suggesting strong underwriting or fee income alongside controlled credit costs.
Revenue grew 61.6% YoY.
At 18x earnings, the multiple is above the banking sector average. Financials rarely sustain elevated multiples through credit cycles.
17.6x earnings. In line with financial-sector norms. The question is whether the current credit environment supports sustained earnings at this level.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$71.06B
▲ +61.6% YoY
Net Income (TTM)
C$22.75B
▲ +75.2% YoY
Net Margin
32.02%
P/E
17.6x
Balance Sheet
Total Assets
C$2.33T
Equity
C$139.15B
Total Debt
C$545.44B
Cash & Equiv.
C$165.28B
Continue Research
Is Royal Bank of Canada (RY) overvalued?
At a P/E of 17.6 and a price-to-free-cash-flow of 5.0, Royal Bank of Canada (RY) trades below a two-stage DCF intrinsic value of about C$2,525.98 per share, so at C$197.80 the stock looks undervalued (1,177.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Royal Bank of Canada scores 82/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.2%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Royal Bank of Canada's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$2,525.98 per share for RY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$1,894.49. At today's C$197.80, that puts the stock about 1,177.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Royal Bank of Canada a high-quality business?+
Royal Bank of Canada scores 82 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Royal Bank of Canada (RY) pay a dividend, and how much?+
Yes, Royal Bank of Canada pays a regular dividend of about C$3.41 per share per year (typically in quarterly installments), a yield of roughly 1.2% at the current price. That is a payout ratio of about 20.8% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For RY's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Royal Bank of Canada a good stock to buy right now?+
That depends on valuation and quality together, not either alone. RY currently trades below its estimated intrinsic value and scores 82/100 on quality (high-quality). It also yields about 1.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.