# Royal Bank of Canada (RY.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Financial Services / Banks. Price C$291.48, market value C$403.5 billion.

## Valuation
- **P/E (trailing): 18.4×** (5-yr avg 11.6×, 3-yr avg 12.7×). Royal Bank of Canada trades at 18.4× trailing earnings, well above its own five-year average of 11.6×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 16.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.64**. A PEG of 0.64 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.3×**. Each dollar of revenue is priced at 3.3×.
- **Price / book: 3.0×**. The shares trade at 3.0× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 19.1%** (5-yr avg 19.0%). Free cash flow equals 19.1% of the market value, in line with its five-year average of 19.0%. Above 5% is generally attractive.
- **Earnings yield: 5.4%**. The inverse of the P/E: 5.4% of the price is earned each year.

## Profitability
- **Net margin: 14.8%**. 14.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.6%**. 14.6% on shareholders' equity is solid.
- **Return on assets: 1.0%**. Each dollar of assets produces 1.0% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 153.8%** (3-yr 41.5%/yr, 5-yr 26.2%/yr). Revenue grew 153.8% over the last year, against 26.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 25.3%** (3-yr 8.4%/yr, 5-yr 12.5%/yr). Earnings per share rose 25.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 39.7%/yr**. Free cash flow has compounded at 39.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: C$165.3 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.42%** (C$6.58 per share, trailing). Royal Bank of Canada yields 2.42%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 43%** (12% of free cash flow). 43% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 7.9%). The dividend has grown 7.1% a year over five years.
- **Shareholder yield: 4.2%**. Dividends plus net buybacks return 4.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover Royal Bank of Canada; the consensus is buy, with an average price target of C$300.86 (+3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 48.5%** (YTD 27.1%, 3-mo 8.4%). The shares are up 48.5% over twelve months including dividends.
- **From 52-week high: -4.9%** (46.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 0.64** (volatility 15%). Beta of 0.64 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RY.TO · Page: https://foliofundamentals.com/stocks/ry.to

Not investment advice.