Royal Bank of Canada
TSX:RY
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Intrinsic Value
The intrinsic value of 
Royal Bank of Canada (RY) under the Base Case is 248.48 CAD per share.
Compared with the current market price of 288.32 CAD, the stock appears
Overvalued by 14% .
The intrinsic value is calculated using the DCF method. The model assumes Royal Bank of Canada's revenue grows 9.7% in 2026, then slows, averaging 5.4% a year over the next five years, versus 7.1% over the last five. If revenue growth matched that historical pace, the estimate would be about C$276.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Royal Bank of Canada Does
Royal Bank of Canada is a major bank that serves people, businesses, and institutions. It takes deposits, makes loans, issues credit cards, helps with mortgages, and provides everyday banking through branches, digital channels, and advisors. It also offers wealth management, insurance, and capital markets services, so it can handle both simple consumer banking and more complex financial needs.
- Headquarters
- Canada CA
- Employees
- 97 795
- IPO date
- Jun 17, 1905
Royal Bank of Canada has a wide economic moat
Moving everyday banking, loans and investments away from RBC takes time and can involve fees or disrupted payments, making customers harder for rivals to win. Its established Canadian deposit base and ability to spread banking costs across many customers also make it difficult for smaller competitors to match its economics.
Read the full moat analysisWhat is the Intrinsic Value of one RY stock?
The intrinsic value for Royal Bank of Canada (RY) under the Base Case is 248.48 CAD.
Is RY stock undervalued or overvalued?
Compared with the current market price of 288.32 CAD, the stock appears Overvalued by 14% .
