Royal Bank of Canada (RY) P/E Ratio History
Historical price-to-earnings valuation from 1995 to 2025
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of February 28, 2026, Royal Bank of Canada (RY) trades at a price-to-earnings ratio of 16.2x, with a stock price of $167.23 and trailing twelve-month earnings per share of $14.44.
The current P/E is 71% above its 5-year average of 9.5x. Over the past five years, RY's P/E has ranged from a low of 7.7x to a high of 10.8x, placing the current valuation at the 100th percentile of its historical range.
Compared to the Financial Services sector median P/E of 13.8x, RY trades at a 18% premium to its sector peers. The sector includes 789 companies with P/E ratios ranging from 0.0x to 196.2x.
The PEG ratio of 1.30 (P/E divided by 25% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, RY trades at a notable discount to the S&P 500 median P/E of 26.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our RY DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
Peer Comparison
P/E metrics vs. North American universal banks peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
JPMJPMorgan Chase & Co. | $810B | 15.2 | 1.17 | +22% |
BACBank of America Corporation | $379B | 13.0 | 0.85Best | +19% |
WFCWells Fargo & Company | $252B | 15.2 | 2.71 | +11% |
RYRoyal Bank of Canada | $234B | 16.2 | 1.30 | +25% |
CCitigroup Inc. | $193B | 18.5 | - | +47% |
TDThe Toronto-Dominion Bank | $163B | 11.5Lowest | 0.93 | +145%Best |
BMOBank of Montreal | $102B | 17.2 | 1.99 | +20% |
BNSThe Bank of Nova Scotia | $94B | 18.2 | 12.74 | -3% |
CMCanadian Imperial Bank of Commerce | $94B | 16.1 | 1.02 | +18% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Fri Oct 31 2025 00:00:00 GM | $146.50 | $14.06 | 10.4x | -1% |
| FY2025 Q3 | $128.46 | $13.22 | 9.7x | -7% | |
| FY2025 Q2 | Wed Apr 30 2025 00:00:00 GM | $119.88 | $12.56 | 9.5x | -9% |
| FY2025 Q1 | Fri Jan 31 2025 00:00:00 GM | $121.93 | $12.28 | 9.9x | -5% |
| FY2024 Q4 | $120.89 | $11.24 | 10.8x | +2% | |
| FY2024 Q3 | Wed Jul 31 2024 00:00:00 GM | $111.74 | $11.23 | 10.0x | -5% |
| FY2024 Q2 | $96.83 | $10.87 | 8.9x | -15% | |
| FY2024 Q1 | Wed Jan 31 2024 00:00:00 GM | $97.61 | $10.71 | 9.1x | -13% |
| FY2023 Q4 | $79.88 | $10.44 | 7.7x | -27% | |
| FY2023 Q3 | Mon Jul 31 2023 00:00:00 GM | $99.13 | $10.28 | 9.6x | -8% |
| FY2023 Q2 | Sun Apr 30 2023 00:00:00 GM | $99.31 | $10.06 | 9.9x | -6% |
| FY2023 Q1 | $102.36 | $10.44 | 9.8x | -7% |
Average P/E for displayed period: 10.5x
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Start ComparisonFrequently Asked Questions
Is RY stock overvalued or undervalued?
RY trades at 16.2x P/E, above its 5-year average of 9.5x. The 100th percentile ranking indicates a premium to historical valuation.
How does RY's valuation compare to peers?
Royal Bank of Canada P/E of 16.2x compares to sector median of 13.8x. The premium reflects expected growth above peers.
What is RY's PEG ratio?
RY PEG ratio is 1.30. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 1995-2025.