# Royal Bank of Canada (RY.TO)

Canonical: https://gigainvestors.com/s/RY.TO

Analysis as of: 2026-10-16T07:33:31.471Z. Financial observations: FY2015–FY2025.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 279.01 per share; close as of 2026-10-15.

Estimated value: low CAD 206.02 per share, central CAD 257.52 per share, high CAD 343.37 per share. Buy at or below the central value CAD 257.52 per share. Valuation as of 2026-10-16T07:33:31.471Z; scenarios are not confidence intervals.

Expected annual return: 9.7% at the stated quote. About 9.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.08×

Chart: Net income; fiscal year observations.

- FY2016: CAD 10B

- FY2017: CAD 11B

- FY2018: CAD 12B

- FY2019: CAD 13B

- FY2020: CAD 11B

- FY2021: CAD 16B

- FY2022: CAD 16B

- FY2023: CAD 14B

- FY2024: CAD 16B

- FY2025: CAD 20B

### moat: pass

- Tangible common book per share

- Parent-total proxy for preferred equity

- Bank / P&C ROTE, median of available years: 18.0%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 15.8%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 18.3%

- FY2017: 19.1%

- FY2018: 18.9%

- FY2019: 18.6%

- FY2020: 15.8%

- FY2021: 18.9%

- FY2022: 17.3%

- FY2023: 14.5%

- FY2024: 15.9%

- FY2025: 17.7%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity

- Book value per share + reinvested dividends, annualized return: 17.5%

- Book return interval: 10 years

- Starting book value per share: CAD 34.52

- Ending book value per share: CAD 79.76

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 16.9%

- FY2017: 17.4%

- FY2018: 20.9%

- FY2019: 15.7%

- FY2020: 14.7%

- FY2021: 27.0%

- FY2022: 19.2%

- FY2023: 15.7%

- FY2024: 6.4%

- FY2025: 21.8%

### management: pass

- Tangible common book per share

- Parent-total proxy for preferred equity

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.3%

- Share growth excluding flagged crisis recapitalisations: -0.3%

- Five-year share growth excluding flagged crisis recapitalisations: -0.3%

- Flagged crisis recapitalisations: 0

- Book value created per share: CAD 45.24

- Earnings retained per share after dividends and buybacks: CAD -2.17

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

The price assumes profits grow 6.3% a year forever · "RBC Expands Credit Derivatives Trading as AI Debt Fuels Hedging" (finance.yahoo.com, Jul 2026) · net income +24.9%

Story as of 2026-10-16T09:59:56.553Z; price observation 2026-10-15.

The price assumes profits grow 6.3% a year forever

- 2025-05-29: Royal Bank of Canada (TSX:RY) Reports Strong Q2 Earnings and Raises Dividends ([finance.yahoo.com](https://finance.yahoo.com/news/royal-bank-canada-tsx-ry-173421948.html))

- 2025-08-27: Royal Bank of Canada Third-Quarter Results Buoyed by Lower Loan-Loss Provision ([finance.yahoo.com](https://finance.yahoo.com/m/ff3bbe66-a2c9-353d-9c4c-2f2ab890bff9/royal-bank-of-canada.html))

- 2026-02-26: Royal Bank of Canada Earnings Lifted by Wealth Management ([finance.yahoo.com](https://finance.yahoo.com/m/91d5f57a-ac23-362e-ae60-162126538915/royal-bank-of-canada-earnings.html))

- 2026-05-28: RBC Lodges Q2 Earnings Beat, Lifts Dividend Increase and Announces Buyback Plans ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rbc-lodges-q2-earnings-beat-104212948.html))

### Net income · FY2025

net income +24.9%; source https://www.sec.gov/Archives/edgar/data/1000275/000119312525305927/d95203d40f.htm; observed 2025-12-03.

- FY2016: CAD 10B 

- FY2017: CAD 11B 

- FY2018: CAD 12B 

- FY2019: CAD 13B 

- FY2020: CAD 11B 

- FY2021: CAD 16B 

- FY2022: CAD 16B 

- FY2023: CAD 14B 

- FY2024: CAD 16B 

- FY2025: CAD 20B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diversified banking; annual sales are CAD 137.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1000275/000119312525305927/d95203d40f.htm (filed 2025-12-03); FY2025: revenue 137357000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RY.TO: Royal Bank of Canada operates as a diversified financial service company worldwide. Its Personal Banking segment offers home equity financing, personal lending, chequing and savings accounts, private banking, auto financing, mutual funds, GICs, credit cards, and payment products and solutions. The company's Commercial Banking segments provides lending, deposit and transaction banking products and services. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other solutions to clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; digital platforms; and independent brokers and partners, as well as client-led advice and solutions. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is based in Toronto, Canada.

### Why customers stay

It earns 18% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-03); 10-year return on tangible equity observations [[2016,0.18312716208139387],[2017,0.1907275687719599],[2018,0.18918750097599826],[2019,0.1862215846065106],[2020,0.15810791672567626],[2021,0.18935230736003456],[2022,0.17331445643449567],[2023,0.1449013754991731],[2024,0.1590720463976801],[2025,0.17694260141603954]]; median 0.1800348817487167. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 13.5 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-03); Dividend observations: [[2016,4997000000],[2017,5309000000],[2018,5640000000],[2019,6025000000],[2020,6333000000],[2021,6420000000],[2022,6960000000],[2023,5549000000],[2024,6637000000],[2025,8800000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1000275/000119312525305927/d95203d40f.htm (filed 2025-12-03); FY2025: cash repurchases 13495000000 CAD.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RY.TO SharesStats.PercentInsiders = 0.027 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits grow 6.3% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-03); Price 279.01; FX 1; original perpetual distributable cash 10.300988795679318; discount 0.1; growth 0.06308021649518183. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 83.80 per share

- 2016-11: CAD 87.08 per share

- 2016-12: CAD 90.87 per share

- 2017-01: CAD 93.56 per share

- 2017-02: CAD 96.48 per share

- 2017-03: CAD 96.89 per share

- 2017-04: CAD 93.47 per share

- 2017-05: CAD 93.37 per share

- 2017-06: CAD 94.16 per share

- 2017-07: CAD 93.01 per share

- 2017-08: CAD 92.68 per share

- 2017-09: CAD 96.54 per share

- 2017-10: CAD 100.87 per share

- 2017-11: CAD 100.85 per share

- 2017-12: CAD 102.65 per share

- 2018-01: CAD 105.32 per share

- 2018-02: CAD 101.09 per share

- 2018-03: CAD 99.52 per share

- 2018-04: CAD 97.64 per share

- 2018-05: CAD 98.00 per share

- 2018-06: CAD 98.99 per share

- 2018-07: CAD 101.55 per share

- 2018-08: CAD 103.66 per share

- 2018-09: CAD 103.54 per share

- 2018-10: CAD 95.92 per share

- 2018-11: CAD 97.42 per share

- 2018-12: CAD 93.44 per share

- 2019-01: CAD 100.02 per share

- 2019-02: CAD 102.85 per share

- 2019-03: CAD 100.82 per share

- 2019-04: CAD 106.77 per share

- 2019-05: CAD 101.58 per share

- 2019-06: CAD 104.07 per share

- 2019-07: CAD 104.22 per share

- 2019-08: CAD 99.58 per share

- 2019-09: CAD 107.47 per share

- 2019-10: CAD 106.24 per share

- 2019-11: CAD 108.73 per share

- 2019-12: CAD 102.75 per share

- 2020-01: CAD 104.58 per share

- 2020-02: CAD 99.82 per share

- 2020-03: CAD 87.17 per share

- 2020-04: CAD 85.63 per share

- 2020-05: CAD 89.33 per share

- 2020-06: CAD 92.11 per share

- 2020-07: CAD 92.40 per share

- 2020-08: CAD 99.33 per share

- 2020-09: CAD 93.49 per share

- 2020-10: CAD 93.16 per share

- 2020-11: CAD 106.06 per share

- 2020-12: CAD 104.59 per share

- 2021-01: CAD 103.50 per share

- 2021-02: CAD 108.36 per share

- 2021-03: CAD 115.87 per share

- 2021-04: CAD 117.31 per share

- 2021-05: CAD 124.21 per share

- 2021-06: CAD 125.59 per share

- 2021-07: CAD 126.18 per share

- 2021-08: CAD 129.60 per share

- 2021-09: CAD 126.03 per share

- 2021-10: CAD 128.82 per share

- 2021-11: CAD 126.30 per share

- 2021-12: CAD 134.25 per share

- 2022-01: CAD 144.93 per share

- 2022-02: CAD 140.21 per share

- 2022-03: CAD 137.64 per share

- 2022-04: CAD 129.75 per share

- 2022-05: CAD 132.17 per share

- 2022-06: CAD 124.64 per share

- 2022-07: CAD 124.86 per share

- 2022-08: CAD 122.13 per share

- 2022-09: CAD 124.37 per share

- 2022-10: CAD 126.05 per share

- 2022-11: CAD 133.78 per share

- 2022-12: CAD 127.30 per share

- 2023-01: CAD 136.16 per share

- 2023-02: CAD 138.54 per share

- 2023-03: CAD 129.25 per share

- 2023-04: CAD 134.51 per share

- 2023-05: CAD 121.43 per share

- 2023-06: CAD 126.52 per share

- 2023-07: CAD 130.73 per share

- 2023-08: CAD 121.74 per share

- 2023-09: CAD 118.70 per share

- 2023-10: CAD 110.76 per share

- 2023-11: CAD 122.62 per share

- 2023-12: CAD 134.00 per share

- 2024-01: CAD 131.21 per share

- 2024-02: CAD 131.80 per share

- 2024-03: CAD 136.62 per share

- 2024-04: CAD 133.19 per share

- 2024-05: CAD 148.98 per share

- 2024-06: CAD 145.65 per share

- 2024-07: CAD 154.28 per share

- 2024-08: CAD 162.98 per share

- 2024-09: CAD 168.80 per share

- 2024-10: CAD 168.39 per share

- 2024-11: CAD 176.16 per share

- 2024-12: CAD 173.32 per share

- 2025-01: CAD 177.18 per share

- 2025-02: CAD 170.98 per share

- 2025-03: CAD 162.10 per share

- 2025-04: CAD 165.47 per share

- 2025-05: CAD 173.94 per share

- 2025-06: CAD 179.47 per share

- 2025-07: CAD 177.79 per share

- 2025-08: CAD 199.58 per share

- 2025-09: CAD 205.12 per share

- 2025-10: CAD 205.47 per share

- 2025-11: CAD 216.14 per share

- 2025-12: CAD 233.99 per share

- 2026-01: CAD 226.72 per share

- 2026-02: CAD 228.07 per share

- 2026-03: CAD 224.88 per share

- 2026-04: CAD 244.31 per share

- 2026-05: CAD 264.44 per share

- 2026-06: CAD 293.68 per share

- 2026-07: CAD 293.41 per share

- 2026-08: CAD 283.40 per share

- 2026-09: CAD 279.94 per share

- 2026-10: CAD 277.25 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 108.86 per share, central CAD 136.07 per share, high CAD 181.43 per share

- FY2017: low CAD 109.21 per share, central CAD 136.51 per share, high CAD 182.01 per share

- FY2018: low CAD 119.31 per share, central CAD 149.14 per share, high CAD 198.85 per share

- FY2019: low CAD 126.70 per share, central CAD 158.37 per share, high CAD 211.16 per share

- FY2020: low CAD 133.41 per share, central CAD 166.76 per share, high CAD 222.34 per share

- FY2021: low CAD 157.37 per share, central CAD 196.71 per share, high CAD 262.28 per share

- FY2022: low CAD 171.89 per share, central CAD 214.86 per share, high CAD 286.49 per share

- FY2023: low CAD 185.94 per share, central CAD 232.42 per share, high CAD 309.90 per share

- FY2024: low CAD 182.65 per share, central CAD 228.32 per share, high CAD 304.42 per share

- FY2025: low CAD 199.25 per share, central CAD 249.06 per share, high CAD 332.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1000275/000119312525305927/d95203d40f.htm); period 2025-10-31, filed 2025-12-03.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.