Royal Bank of Canada (TSX:RY) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Royal Bank of Canada Effective Interest Rate on Debt % Related Terms
Royal Bank of Canada Effective Interest Rate on Debt % Historical Data
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The historical data trend for Royal Bank of Canada's Effective Interest Rate on Debt % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royal Bank of Canada Effective Interest Rate on Debt % Chart
TSX:RY vs JPM, BAC, WFC: Effective Interest Rate on Debt % Comparison
For the Banks - Diversified subindustry, Royal Bank of Canada's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Bank of Canada Effective Interest Rate on Debt % vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's Effective Interest Rate on Debt % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Apr. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 11.71% mean?
Royal Bank of Canada (TSX:RY) has a Effective Interest Rate on Debt % of 11.71% as of Apr. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Royal Bank of Canada and its competitors.
Is Royal Bank of Canada's Effective Interest Rate on Debt % too high?
Royal Bank of Canada's current Effective Interest Rate on Debt % is 11.71%. Overall, Royal Bank of Canada has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's Effective Interest Rate on Debt % compare to JPM and BAC?
Royal Bank of Canada's Effective Interest Rate on Debt % of 11.71% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Banks company?
A good Effective Interest Rate on Debt % depends on the Banks industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Royal Bank of Canada and its competitors. Royal Bank of Canada's current Effective Interest Rate on Debt % is 11.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, Royal Bank of Canada (TSX:RY) is currently considered Significantly Overvalued. The stock's GF Value™ is C$205.37, compared to a current price of C$298.81 — trading 45.5% above its estimated fair value. The current Effective Interest Rate on Debt % is 11.71%. Royal Bank of Canada's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current Effective Interest Rate on Debt % is 11.71% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Bank of Canada (TSX:RY) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Bank of Canada stock appears to be overvalued.
The current stock price of C$298.81 is trading 45.5% above its estimated GF Value™ of C$205.37.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for TSX:RY:
Effective Interest Rate on Debt %: 11.71%
GF Value™: C$205.37 vs. price of C$298.81 (45.5% above fair value)
No single metric tells the full story. See the TSX:RY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Bank of Canada is one of the two largest banks in Canada, with around CAD 2.4 trillion in assets at the end of April 2026. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
77GF Score
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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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