Latest Ratios: P/E Ratio 21.1x · EV/EBITDA 40.5x · ROE 15.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $292.0B | $206.5B | $170.9B | $111.2B | $130.0B | $148.4B | $100.0B | $116.2B | $105.7B | $115.2B | $93.4B |
| Enterprise Value | $818.0B | $954.1B | $827.7B | $752.7B | $648.7B | $522.2B | $483.6B | $549.8B | $497.8B | $425.6B | $377.5B |
| P/E Ratio → | 21.09 | 10.40 | 10.76 | 7.74 | 8.36 | 9.40 | 8.95 | 9.22 | 8.71 | 10.34 | 9.22 |
| P/S Ratio | 3.02 | 1.50 | 1.27 | 0.98 | 1.95 | 2.57 | 1.64 | 1.73 | 1.83 | 2.31 | 2.03 |
| P/B Ratio | 3.01 | 1.48 | 1.34 | 0.97 | 1.20 | 1.50 | 1.15 | 1.39 | 1.32 | 1.55 | 1.30 |
| P/FCF | 7.83 | 3.90 | 8.19 | 4.76 | 6.69 | 2.52 | 0.73 | 9.68 | 6.82 | 3.17 | 3.65 |
| P/OCF | 7.52 | 3.74 | 7.39 | 4.27 | 5.93 | 2.43 | 0.72 | 8.15 | 6.05 | 3.05 | 3.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.95 | 6.15 | 6.63 | 9.71 | 9.05 | 7.91 | 8.16 | 8.64 | 8.53 | 8.21 |
| EV / EBITDA | 40.46 | 33.21 | 36.23 | 35.78 | 28.50 | 22.48 | 28.39 | 30.80 | 28.59 | 26.13 | 25.43 |
| EV / EBIT | 45.32 | 37.19 | 41.67 | 41.40 | 32.26 | 25.31 | 33.61 | 34.55 | 31.59 | 29.01 | 28.39 |
| EV / FCF | — | 18.01 | 39.68 | 32.24 | 33.37 | 8.87 | 3.55 | 45.80 | 32.13 | 11.70 | 14.75 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.3% | 45.3% | 40.3% | 43.3% | 72.3% | 87.2% | 69.9% | 65.2% | 71.6% | 78.1% | 79.4% |
| Operating Margin | 18.7% | 18.7% | 14.8% | 16.0% | 30.1% | 35.8% | 23.5% | 23.6% | 27.4% | 29.4% | 28.9% |
| Net Profit Margin | 14.8% | 14.8% | 12.1% | 12.9% | 23.6% | 27.8% | 18.7% | 19.1% | 21.5% | 22.9% | 22.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.3% | 15.3% | 13.4% | 13.1% | 15.3% | 17.3% | 13.4% | 15.7% | 16.1% | 15.7% | 15.4% |
| ROA | 0.9% | 0.9% | 0.8% | 0.7% | 0.9% | 1.0% | 0.7% | 0.9% | 1.0% | 1.0% | 0.9% |
| ROIC | 2.0% | 2.0% | 1.7% | 1.6% | 2.0% | 2.4% | 1.8% | 2.1% | 2.4% | 2.6% | 2.5% |
| ROCE | 3.5% | 3.5% | 2.9% | 2.8% | 3.6% | 4.4% | 3.2% | 3.9% | 4.1% | 3.7% | 3.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.00 | 6.00 | 6.13 | 6.73 | 6.46 | 5.74 | 6.24 | 5.96 | 5.74 | 4.99 | 4.57 |
| Debt / EBITDA | 29.06 | 29.06 | 34.13 | 36.82 | 30.72 | 24.43 | 31.78 | 27.92 | 26.35 | 22.80 | 22.03 |
| Net Debt / Equity | — | 5.37 | 5.16 | 5.57 | 4.80 | 3.78 | 4.42 | 5.18 | 4.90 | 4.17 | 3.97 |
| Net Debt / EBITDA | 26.02 | 26.02 | 28.75 | 30.49 | 22.79 | 16.09 | 22.52 | 24.29 | 22.52 | 19.05 | 19.14 |
| Debt / FCF | — | 14.11 | 31.49 | 27.48 | 26.68 | 6.35 | 2.82 | 36.12 | 25.31 | 8.54 | 11.10 |
| Interest Coverage | 0.36 | 0.36 | 0.26 | 0.29 | 1.11 | 2.53 | 1.02 | 0.74 | 1.05 | 1.50 | 1.68 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.13 | 0.13 | 0.14 | 0.18 | 0.21 | 0.21 | 0.19 | 0.12 | 0.13 | 0.19 | 0.18 |
| Quick Ratio | 0.13 | 0.13 | 0.14 | 0.18 | 0.21 | 0.21 | 0.19 | 0.12 | 0.13 | 0.19 | 0.18 |
| Cash Ratio | 0.06 | 0.06 | 0.08 | 0.10 | 0.14 | 0.16 | 0.14 | 0.06 | 0.07 | 0.07 | 0.06 |
| Asset Turnover | — | 0.06 | 0.06 | 0.06 | 0.03 | 0.03 | 0.04 | 0.05 | 0.04 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 43.2% | 43.2% | 40.9% | 38.0% | 44.1% | 40.0% | 55.4% | 46.9% | 45.5% | 46.5% | 48.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 9.6% | 9.3% | 12.9% | 12.0% | 10.6% | 11.2% | 10.8% | 11.5% | 9.7% | 10.9% |
| FCF Yield | 12.8% | 25.7% | 12.2% | 21.0% | 15.0% | 39.7% | 136.2% | 10.3% | 14.7% | 31.6% | 27.4% |
| Buyback Yield | 3.3% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 5.4% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.5B | $1.5B | $1.5B |
Canadian housing market exposure
With a P/B ratio of 2.92, Royal Bank of Canada trades at a notable premium to its domestic peers, suggesting that market participants assign significant value to its diversified revenue streams and historical ability to maintain superior returns on tangible equity compared to the broader Canadian banking sector.
The current valuation multiple appears to price in a high degree of confidence in the bank's integrated wealth and capital markets model. Investors should monitor whether this premium persists if the integration of recent acquisitions, such as HSBC Canada, fails to deliver the expected accretion to tangible book value.
Based on reported financial data, the bank's profitability is underpinned by a consistent fee income contribution ranging between 21.4% and 26.3% of total revenue, which serves to stabilize the ROE profile against the inherent volatility of interest-rate-sensitive net interest margins in the current macroeconomic environment.
The bank's ability to maintain a stable ROE while navigating fluctuating credit provisions suggests that its non-interest income engines are effectively offsetting cyclical pressures. This structural reliance on fee-based services appears to be a key differentiator that supports the bank's profitability signal despite the capital-intensive nature of its recent U.S. expansion.
As reported in financial statements, the bank maintained an efficiency ratio between 24.6% and 27.8% over the last ten quarters, indicating that management has successfully contained non-interest expenses despite the significant operational complexities associated with integrating large-scale acquisitions like HSBC Canada into the existing domestic infrastructure.
The stability of the efficiency ratio suggests that the bank is achieving meaningful cost synergies, which is critical for maintaining margins in a competitive deposit environment. Investors should watch for any upward drift in this ratio, which may indicate that the costs of scaling the U.S. subsidiary are beginning to outpace revenue growth.
According to recent quarterly filings, the bank has maintained a consistent equity-to-assets ratio of 0.06, demonstrating a disciplined approach to capital management that preserves the necessary buffer to support dividend growth and strategic initiatives despite the significant capital requirements associated with recent large-scale domestic and international acquisitions.
This capital positioning appears adequate to meet regulatory expectations while providing the flexibility to absorb potential credit losses in the mortgage book. However, the bank's capacity for aggressive capital return may be constrained if OSFI mandates higher capital buffers in response to systemic risks in the Canadian housing market.
The P/E ratio is frequently misapplied to Royal Bank of Canada, as it fails to account for the significant earnings volatility introduced by IFRS 9 provisioning requirements, which can artificially depress or inflate net income based on forward-looking macroeconomic forecasts rather than actual realized credit losses.
Investors should prioritize P/TBV and ROE as more reliable indicators of value and performance, as these metrics are less susceptible to the accounting noise inherent in provision adjustments. Relying on P/E may obscure the underlying health of the bank's core operating franchise by over-weighting temporary fluctuations in credit loss reserves.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RY stock.
Royal Bank of Canada's current P/E ratio is 21.1x. The historical average is 10.7x. This places it at the 100th percentile of its historical range.
Royal Bank of Canada's current EV/EBITDA is 40.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.5x.
Royal Bank of Canada's return on equity (ROE) is 15.3%. The historical average is 15.5%.
Based on historical data, Royal Bank of Canada is trading at a P/E of 21.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Royal Bank of Canada's current dividend yield is 2.10% with a payout ratio of 43.2%.
Royal Bank of Canada has 45.3% gross margin and 18.7% operating margin. Operating margin between 10-20% is typical for established companies.
Royal Bank of Canada's Debt/EBITDA ratio is 29.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.