Royal Bank of Canada (NYSE:RY) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Royal Bank of Canada Forward PE Ratio Related Terms
Royal Bank of Canada Forward PE Ratio Historical Data
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The historical data trend for Royal Bank of Canada's Forward PE Ratio 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 Forward PE Ratio Chart
Royal Bank of Canada Annual Data
Trend
2016-10
2017-10
2018-10
2019-10
2020-10
2021-10
2022-10
2023-10
2024-10
2025-10
Forward PE Ratio
11.63
12.71
10.48
11.26
10.92
11.60
10.62
9.16
13.21
13.73
Royal Bank of Canada Quarterly Data
2016-01
2016-04
2016-07
2016-10
2017-01
2017-04
2017-07
2017-10
2018-01
2018-04
2018-07
2018-10
2019-01
2019-04
2019-07
2019-10
2020-01
2020-04
2020-07
2020-10
2021-01
2021-04
2021-07
2021-10
2022-01
2022-04
2022-07
2022-10
2023-01
2023-04
2023-07
2023-10
2024-01
2024-04
2024-07
2024-10
2025-01
2025-04
2025-07
2025-10
2026-01
2026-04
Forward PE Ratio
9.85
11.00
11.16
11.63
13.18
12.66
11.83
12.71
13.12
11.68
11.36
10.48
11.01
11.79
10.89
11.26
11.21
9.12
10.66
10.92
11.90
11.81
11.75
11.60
12.90
11.53
10.37
10.62
11.34
11.38
10.83
9.16
11.59
11.90
12.17
13.21
13.58
12.31
12.68
13.73
14.57
15.13
RY vs JPM, BAC, WFC: Forward PE Ratio Comparison
For the Banks - Diversified subindustry, Royal Bank of Canada's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Royal Bank of Canada (RY) has a Forward PE Ratio of 16.46 as of Jul. 05, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Royal Bank of Canada and its competitors. According to the industry distribution chart, Royal Bank of Canada ranks #744 out of 817 companies in the Banks industry, placing it in the top 91.1%.
Is Royal Bank of Canada's Forward PE Ratio too high?
Royal Bank of Canada's current Forward PE Ratio is 16.46. The Banks industry median Forward PE Ratio is 11.12. Royal Bank of Canada's value of 16.46 is 48% above this industry median. Based on the distribution chart, Royal Bank of Canada ranks #744 out of 817 companies in the Banks industry, which is in the bottom quartile relative to peers. 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 Forward PE Ratio compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #744 out of 817 companies for Forward PE Ratio. This places Royal Bank of Canada in the lower half of its industry. The industry median Forward PE Ratio is 11.12. Royal Bank of Canada's value of 16.46 is 48% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Banks company?
The median Forward PE Ratio among Banks companies is 11.12, based on 817 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current Forward PE Ratio of 16.46 is 48% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median Forward PE Ratio is 11.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current Forward PE Ratio is 16.46. 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 (RY) is currently considered Significantly Overvalued. The stock's GF Value™ is $144.60, compared to a current price of $204.79 — trading 41.6% above its estimated fair value. The current Forward PE Ratio is 16.46 and 48% above the Banks industry median of 11.12. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Royal Bank of Canada (RY), the current Forward PE Ratio is 16.46 as of Jul. 05, 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 (RY) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Bank of Canada stock appears to be overvalued.
The current stock price of $204.79 is trading 41.6% above its estimated GF Value™ of $144.60.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for RY:
Forward PE Ratio: 16.46
GF Value™: $144.60 vs. price of $204.79 (41.6% above fair value)
Industry Position: 48% above the Banks median (#744 of 817)
No single metric tells the full story. See the 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
Get the complete analysis for RY
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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