Royal Bank of Canada (RY) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Diversified
EV/EBITDA
↑
38.05
↑+22% vs avg
5yr avg: 31.24
30Y Low6.6·High36.2
P/FCF
↑
6.52
↑+25% vs avg
5yr avg: 5.21
30Y Low0.7·High23.8
P/B Ratio
↓
2.50
↑+92% vs avg
5yr avg: 1.30
30Y Low1.0·High2.9
ROE
↓
15.3%
↓+3% vs avg
5yr avg: 14.9%
30Y Low11%·High22%
Debt/EBITDA
↑
29.06
↓-6% vs avg
5yr avg: 31.03
30Y Low1.4·High36.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RY Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Royal Bank of Canada trades at 17.5x earnings, 88% above its 5-year average of 9.3x, sitting at the 97th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 31%. On a free-cash-flow basis, the stock trades at 6.5x P/FCF, 25% above the 5-year average of 5.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $254.3B | $206.5B | $170.9B | $111.2B | $130.0B | $148.4B | $100.0B | $116.2B | $105.7B | $115.2B | $93.4B |
| Enterprise Value | $804.5B | $954.1B | $827.7B | $752.7B | $648.7B | $522.2B | $483.6B | $549.8B | $497.8B | $425.6B | $377.5B |
| P/E Ratio → | 17.51 | 10.40 | 10.76 | 7.74 | 8.36 | 9.40 | 8.95 | 9.22 | 8.71 | 10.34 | 9.22 |
| P/S Ratio | 2.52 | 1.50 | 1.27 | 0.98 | 1.95 | 2.57 | 1.64 | 1.73 | 1.83 | 2.31 | 2.03 |
| P/B Ratio | 2.50 | 1.48 | 1.34 | 0.97 | 1.20 | 1.50 | 1.15 | 1.39 | 1.32 | 1.55 | 1.30 |
| P/FCF | 6.52 | 3.90 | 8.19 | 4.76 | 6.69 | 2.52 | 0.73 | 9.68 | 6.82 | 3.17 | 3.65 |
| P/OCF | 6.26 | 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
RY EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Royal Bank of Canada's enterprise value stands at 38.0x EBITDA, 22% above its 5-year average of 31.2x. The Financial Services sector median is 11.4x, placing the stock at a 233% premium on an enterprise-value basis.
| 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 | 38.05 | 33.21 | 36.23 | 35.78 | 28.50 | 22.48 | 28.39 | 30.80 | 28.59 | 26.13 | 25.43 |
| EV / EBIT | 42.61 | 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 |
RY Profitability
Margins and return-on-capital ratios measuring operating efficiency
Royal Bank of Canada earns an operating margin of 18.7%, below the Financial Services sector average of 21.2%. Operating margins have expanded from 16.0% to 18.7% over the past 3 years, signaling improving operational efficiency. ROE of 15.3% indicates solid capital efficiency, compared to the sector median of 9.4%. ROIC of 2.0% represents below-average returns on invested capital versus a sector median of 5.7%.
Margins
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% |
Return on Capital
| 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% |
RY Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Royal Bank of Canada carries a Debt/EBITDA ratio of 29.1x, which is highly leveraged (603% above the sector average of 4.1x). Net debt stands at $747.6B ($835.0B total debt minus $87.4B cash). Interest coverage of just 0.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 |
RY Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.13x is below 1.0, meaning current liabilities exceed current assets — though the company's $87.4B cash position helps mitigate short-term liquidity concerns.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
RY Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Royal Bank of Canada returns 6.4% to shareholders annually — split between a 2.5% dividend yield and 3.9% buyback yield. A payout ratio of 43.2% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 5.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.5% | 4.3% | 3.9% | 5.0% | 5.4% | 4.3% | 6.3% | 5.2% | 5.3% | 4.6% | 5.4% |
| Payout Ratio | 43.2% | 43.2% | 40.9% | 38.0% | 44.1% | 40.0% | 55.4% | 46.9% | 45.5% | 46.5% | 48.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 9.6% | 9.3% | 12.9% | 12.0% | 10.6% | 11.2% | 10.8% | 11.5% | 9.7% | 10.9% |
| FCF Yield | 15.3% | 25.7% | 12.2% | 21.0% | 15.0% | 39.7% | 136.2% | 10.3% | 14.7% | 31.6% | 27.4% |
| Buyback Yield | 3.9% | 6.5% | 3.9% | 3.7% | 8.7% | 4.2% | 7.2% | 6.5% | 7.0% | 6.9% | 6.3% |
| Total Shareholder Yield | 6.4% | 10.8% | 7.8% | 8.7% | 14.0% | 8.5% | 13.5% | 11.7% | 12.3% | 11.5% | 11.7% |
| Shares Outstanding | — | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.5B | $1.5B | $1.5B |
Peer Comparison
Compare RY with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RYYou | $254B | 17.5 | 38.0 | 6.5 | 45.3% | 18.7% | 15.3% | 2.0% | 29.1 |
 TD | $182B | 12.8 | 30.4 | — | 49.0% | 20.7% | 16.9% | 2.3% | 25.4 |
 BMO | $110B | 18.4 | 36.0 | 17.5 | 41.6% | 14.8% | 10.1% | 1.8% | 30.2 |
 BNS | $97B | 18.7 | 47.0 | 26.0 | 44.3% | 14.4% | 9.0% | 1.6% | 41.6 |
 CM | $104B | 17.8 | 36.4 | — | 43.0% | 17.6% | 13.7% | 2.1% | 29.4 |
 JPM | $849B | 15.9 | 13.6 | — | 58.6% | 27.7% | 17.4% | 5.4% | 9.0 |
 BAC | $408B | 14.0 | 14.8 | 32.3 | 55.4% | 18.5% | 10.2% | 3.2% | 10.0 |
 WFC | $249B | 15.0 | 10.6 | 81.9 | 62.2% | 18.6% | 10.7% | 3.7% | 9.1 |
 GS | $291B | 23.1 | 34.9 | — | 41.1% | 14.5% | 12.0% | 1.9% | 29.7 |
 MS | $308B | 24.3 | 26.0 | — | 55.6% | 17.1% | 13.0% | 2.9% | 15.8 |
 C | $223B | 21.4 | 25.1 | — | 41.7% | 10.0% | 6.1% | 1.6% | 27.7 |
| Financial Services Median | — | 13.4 | 11.4 | 10.6 | 63.4% | 21.2% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonRY — Frequently Asked Questions
Quick answers to the most common questions about buying RY stock.
What is Royal Bank of Canada's P/E ratio?
Royal Bank of Canada's current P/E ratio is 17.5x. The historical average is 10.7x. This places it at the 97th percentile of its historical range.
What is Royal Bank of Canada's EV/EBITDA?
Royal Bank of Canada's current EV/EBITDA is 38.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.5x.
What is Royal Bank of Canada's ROE?
Royal Bank of Canada's return on equity (ROE) is 15.3%. The historical average is 15.5%.
Is RY stock overvalued?
Based on historical data, Royal Bank of Canada is trading at a P/E of 17.5x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Royal Bank of Canada's dividend yield?
Royal Bank of Canada's current dividend yield is 2.53% with a payout ratio of 43.2%.
What are Royal Bank of Canada's profit margins?
Royal Bank of Canada has 45.3% gross margin and 18.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Royal Bank of Canada have?
Royal Bank of Canada's Debt/EBITDA ratio is 29.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.