Royal Bank of CanadaTSX:RY +0.38%77 FCF Yield % is 17.73 as of Jun. 26, 2026, which is 5% below its 10-year median of 18.73. 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 1,505 Banks companies, Royal Bank of Canada ranks better than 74.29% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Royal Bank of Canada FCF Yield % Related Terms
Royal Bank of Canada FCF Yield % Historical Data
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The historical data trend for Royal Bank of Canada's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's FCF Yield % 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.
Royal Bank of Canada (TSX:RY) has a FCF Yield % of 17.73 as of Jun. 26, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Royal Bank of Canada and its competitors. This is near median its historical median of 18.73. According to the industry distribution chart, Royal Bank of Canada ranks #387 out of 1505 companies in the Banks industry, placing it in the top 25.7%.
Is Royal Bank of Canada's FCF Yield % too high?
Royal Bank of Canada's current FCF Yield % of 17.73 is near median its 10-year median of 18.73. The Banks industry median FCF Yield % is 8.20. Royal Bank of Canada's value of 17.73 is 116.2% above this industry median. Based on the distribution chart, Royal Bank of Canada ranks #387 out of 1505 companies in the Banks industry, which is above 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 FCF Yield % compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #387 out of 1505 companies for FCF Yield %. This puts Royal Bank of Canada in the upper half of its industry. The industry median FCF Yield % is 8.20. Royal Bank of Canada's value of 17.73 is 116.2% above this benchmark. While the company's 10-year median is 18.73 vs. the industry median of 8.20, 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 FCF Yield % for a Banks company?
The median FCF Yield % among Banks companies is 8.20, based on 1,505 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current FCF Yield % of 17.73 is 116.2% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median FCF Yield % is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current FCF Yield % is 17.73, which is near median its own 10-year median of 18.73. 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$289.12 — trading 41.3% above its estimated fair value. The current FCF Yield % is 17.73, which is near median its 10-year median of 18.73 and 116.2% above the Banks industry median of 8.20. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current FCF Yield % is 17.73 as of Jun. 26, 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$289.12 is trading 41.3% 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:
FCF Yield %: 17.73 (near median its 10-year median of 18.73)
GF Value™: C$204.65 vs. price of C$289.12 (41.3% above fair value)
Industry Position: 116.2% above the Banks median (#387 of 1505)
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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