Royal Bank of CanadaTSX:RY -0.13%77 EV-to-FCF is 12.51 as of Jun. 25, 2026, which is 49% above its 10-year median of 8.40. GuruFocus rates TSX:RY with a GF Score™ of 77/100 and a GF Value™ of C$204.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,193 Banks companies, Royal Bank of Canada ranks worse than 70.75% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Royal Bank of Canada's Enterprise Value is C$891,652 Mil.
Royal Bank of Canada's Free Cash Flow for the trailing twelve months (TTM) ended in Apr. 2026 was C$71,255 Mil. Therefore, Royal Bank of Canada's EV-to-FCF for today is 12.51.
The historical rank and industry rank for Royal Bank of Canada's EV-to-FCF or its related term are showing as below:
TSX:RY'
s EV-to-FCF Range Over the Past 10 Years
Min: -78.41 Med: 8.4 Max: 125.77
Current: 12.51
During the past 13 years, the highest EV-to-FCF of Royal Bank of Canada was 125.77. The lowest was -78.41. And the median was 8.40.
TSX:RY's EV-to-FCF is ranked worse than 70.75% of 1193
companies
in the Banks industry
Industry Median: 6.52
vs TSX:RY: 12.51
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Royal Bank of Canada (TSX:RY) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Royal Bank of Canada's PE Ratio (TTM) for today is calculated as:
Royal Bank of Canada's share price for today is C$288.03.
Royal Bank of Canada's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$15.390.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Royal Bank of Canada EV-to-FCF Related Terms
Royal Bank of Canada EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Royal Bank of Canada's EV-to-FCF 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.
For the Banks - Diversified subindustry, Royal Bank of Canada's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's EV-to-FCF falls into.
Royal Bank of Canada's current Enterprise Value is C$891,652 Mil.
Royal Bank of Canada's Free Cash Flow for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$71,255 Mil.
* 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 (TSX:RY) has a EV-to-FCF of 12.51 as of Jun. 25, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Royal Bank of Canada and its competitors. This is 49% above median its historical median of 8.40. According to the industry distribution chart, Royal Bank of Canada ranks #844 out of 1193 companies in the Banks industry, placing it in the top 70.7%.
Is Royal Bank of Canada's EV-to-FCF too high?
Royal Bank of Canada's current EV-to-FCF of 12.51 is 49% above median its 10-year median of 8.40. The Banks industry median EV-to-FCF is 6.52. Royal Bank of Canada's value of 12.51 is 91.9% above this industry median. Based on the distribution chart, Royal Bank of Canada ranks #844 out of 1193 companies in the Banks industry, which is below the industry midpoint. 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 EV-to-FCF compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #844 out of 1193 companies for EV-to-FCF. This places Royal Bank of Canada in the lower half of its industry. The industry median EV-to-FCF is 6.52. Royal Bank of Canada's value of 12.51 is 91.9% above this benchmark. While the company's 10-year median is 8.40 vs. the industry median of 6.52, Royal Bank of Canada has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Banks company?
The median EV-to-FCF among Banks companies is 6.52, based on 1,193 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current EV-to-FCF of 12.51 is 91.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median EV-to-FCF is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current EV-to-FCF is 12.51, which is 49% above median its own 10-year median of 8.40. 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$204.65, compared to a current price of C$288.03 — trading 40.7% above its estimated fair value. The current EV-to-FCF is 12.51, which is 49% above median its 10-year median of 8.40 and 91.9% above the Banks industry median of 6.52. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current EV-to-FCF is 12.51 as of Jun. 25, 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$288.03 is trading 40.7% above its estimated GF Value™ of C$204.65.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for TSX:RY:
EV-to-FCF: 12.51 (49% above median its 10-year median of 8.40)
GF Value™: C$204.65 vs. price of C$288.03 (40.7% above fair value)
Industry Position: 91.9% above the Banks median (#844 of 1193)
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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