# Royal Bank of Canada (TSX:RY)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/TSX/RY

Price C$284.16 (CAD), market cap C$393.4B, Financials - Banks - Diversified.

## Valuation

- SE Reference Value (expected value, DCF): C$248.30 (central 50% range C$227.33 to C$279.60), -13% against the price; range width narrow
- SE Grade: 1 of 3 (Value 0, Quality 2, Moat 3)
- Consensus Rating: Buy (Strong buy 4, Buy 4, Hold 5, Sell 1, Strong sell 0)
- Consensus Price (mean): C$306.28, +8% against the price

## Key metrics

Financials in CAD. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | C$71.16B | CAGR 7.1% | CAGR 6.2% | P63 |
| Revenue growth | 10.4% | 5.3% | 5.1% | P63 |
| NIM | 1.6% | 1.5% | 1.6% | P50 |
| Efficiency ratio | 53.5% | 59.7% | 60.0% | P40 |
| Net margin | 31.2% | 29.8% | 27.8% | P70 |
| Net interest income | C$34.48B | CAGR 9.6% | CAGR 8.0% | - |
| Net interest income growth (FY2025) | 18.1% | 11.2% | 10.0% | P93 |
| ROTE | 20.7% | 18.9% | 20.0% | P93 |
| ROE | 17.2% | 16.1% | 16.2% | P90 |
| ROA | 0.9% | 0.8% | 0.9% | P87 |
| EPS | C$15.95 | CAGR 12.5% | CAGR 8.5% | - |
| EPS growth | 20.2% | 9.0% | 9.0% | P60 |
| Book value per share | C$96.27 | CAGR 9.8% | CAGR 8.6% | - |
| Tangible book value per share | C$76.99 | CAGR 9.5% | CAGR 9.1% | - |
| Dividend per share | C$6.58 | CAGR 7.1% | CAGR 7.2% | - |
| Dividend yield | 2.3% | 3.8% | 3.8% | P30 |
| Payout ratio | 41.5% | 44.8% | 46.3% | P47 |
| Diluted shares | 1,384.4M | CAGR -0.2% | CAGR -0.6% | P33 |
| Buyback yield | 1.3% | 0.2% | 0.8% | P33 |
| Equity/assets | 5.8% | 5.8% | 5.9% | P50 |
| Assets | C$2.499T | CAGR 7.4% | CAGR 7.8% | P50 |
| Long-term debt | C$505.8B | CAGR 9.1% | CAGR 5.3% | P47 |

## Company Note (Q3 2026)

Written by AI from the data above.

**Royal Bank's third quarter was carried** by capital markets and commercial lending. Revenue rose 9.1% to C$18.54B and diluted EPS rose 12.8% to C$4.23. Origination and M&A lifted investment banking across most regions. Higher volumes and margins grew Commercial Banking net interest income. Variable pay tied to those revenues drove more than half of expense growth. The franchise is earning well, but SE fair value of C$249 is 12.5% below the price, so the shares already discount that strength.

**Management held its full-year targets**. All-bank net interest income excluding trading is on track for mid-single-digit growth, and year-to-date expense growth sits within mid-single-digit guidance. The bank expects positive operating leverage for the year, including 1%-2% in Canadian banking. It sees Canadian margins relatively stable as mortgage and deposit competition offsets structural tailwinds. Asked why NII growth lags peers, management cited a purchase price accounting headwind. Revenue growth slowed from the prior quarter, and the consensus years also show slower growth ahead.

**Analysts look for FY2026 EPS growth** of 13.6% on revenue growth of 8.8%. They see EPS growth easing to 9.0% in FY2027. That deceleration matches the slowing quarterly revenue and the mid-single-digit guidance, so the forward path points to a cooling pace. The bank has beaten the estimate in 7 of the last 8 quarters. Even so, the price assumes results keep running ahead of a base case that already embeds solid growth, which leaves little room for a miss.

**Cost discipline has improved**: the efficiency ratio moved from 58.0% in FY2022 to 54.9% in FY2025, better over three years. Return on tangible equity of 20.7% is steady against its median. ROE of 17.2% is also steady, and the screened ROE sits above the peer median. Return on assets of 0.9% is steady as well. That thin asset return, together with share count growth, is what holds Quality back. The returns are high for a lender, but they are not rising.

**The multiples are stretched** against history. P/B of 2.95x is 62% above its 10-year median of 1.82x, and P/TBV of 3.69x is 60% above its 10-year median of 2.30x. The trailing P/E of 17.8x also sits well above its long-run median. SE fair value, rated high confidence, is 12.5% below the price, while the analyst target is 7.8% above it. For the price to hold, earnings must keep beating the model's base case. A first missed EPS estimate would show that they are not.

**The SE Score** is 1 of 3. Quality earns two stars on a three-year median ROE of 14% against a 5.4% cost of equity, held back by a modest return on assets and equity-to-assets. Moat earns three stars: ROE has topped 12% in each of ten years, and every C$1 retained has created C$2.12 of market value. Value earns no stars, with the price above SE fair value and P/B well above its own history. That price position lowered the two-star business tier by one notch.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology