Royal Bank of Canada (RY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Royal Bank of Canada stock (RY) is currently trading at $162.35. Royal Bank of Canada PE ratio is 15.55. Royal Bank of Canada PS ratio (Price-to-Sales) is 3.62. Analyst consensus price target for RY is $174.55. WallStSmart rates RY as Moderate Buy.
- RY PE ratio analysis and historical PE chart
- RY PS ratio (Price-to-Sales) history and trend
- RY intrinsic value — DCF, Graham Number, EPV models
- RY stock price prediction 2025 2026 2027 2028 2029 2030
- RY fair value vs current price
- RY insider transactions and insider buying
- Is RY undervalued or overvalued?
- Royal Bank of Canada financial analysis — revenue, earnings, cash flow
- RY Piotroski F-Score and Altman Z-Score
- RY analyst price target and Smart Rating
Royal Bank of Canada
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RY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Royal Bank of Canada (RY)
RY trades at a significant discount to its Graham intrinsic value of $304.40, offering a 44% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Royal Bank of Canada (RY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Overall metrics suggest strong investment potential with favorable risk/reward.
Royal Bank of Canada (RY) Key Strengths (4)
Mega-cap company, among the largest in the world
Keeps $46 of every $100 in revenue after operating costs
Keeps $33 of every $100 in revenue as net profit
Solid profitability: $15 profit per $100 equity
Supporting Valuation Data
Royal Bank of Canada (RY) Areas to Watch (6)
Paying a premium for growth, expensive relative to earnings expansion
Modest revenue growth at 7.50%
Revenue is fairly priced at 3.62x sales
Fairly priced relative to book value
Solid earnings growth at 13.80%
Moderate institutional interest at 48.41%
Supporting Valuation Data
Royal Bank of Canada (RY) Detailed Analysis Report
Overall Assessment
This company scores 68/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 5.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with Return on Equity at 15.40%, Operating Margin at 46.20%, Profit Margin at 33.10%.
The Bear Case
The primary concerns are PEG Ratio, Revenue Growth, Price/Sales. Some valuation metrics including PEG Ratio (2.41), Price/Sales (3.62), Price/Book (2.38) suggest expensive pricing. Growth concerns include Revenue Growth at 7.50%, EPS Growth at 13.80%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 15.40% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 7.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Operating Margin) and negatives (PEG Ratio, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for Royal Bank of Canada (RY) · FINANCIAL SERVICES › BANKS - DIVERSIFIED
The Big Picture
Royal Bank of Canada is a mature, profitable business with steady cash generation. Revenue reached 63.4B with 8% growth year-over-year. Profit margins are strong at 33.1%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 1540.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 33.1% and operating margin of 46.2% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Dividend sustainability with a current yield of 3.8%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor BANKS - DIVERSIFIED industry trends, competitive moves, and regulatory changes that could impact Royal Bank of Canada.
Bottom Line
Royal Bank of Canada is a well-established business delivering consistent profitability with 33.1% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 6:56:45 PM
About Royal Bank of Canada(RY)
NYSE
FINANCIAL SERVICES
BANKS - DIVERSIFIED
USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.