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Royal Bank of Canada (TSX:RY) PS Ratio : 4.36 (As of Dec. 15, 2024)


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What is Royal Bank of Canada PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Royal Bank of Canada's share price is C$177.31. Royal Bank of Canada's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 was C$40.66. Hence, Royal Bank of Canada's PS Ratio for today is 4.36.

Warning Sign:

Royal Bank of Canada stock PS Ratio (=4.36) is close to 10-year high of 4.44

The historical rank and industry rank for Royal Bank of Canada's PS Ratio or its related term are showing as below:

TSX:RY' s PS Ratio Range Over the Past 10 Years
Min: 2.4   Med: 3.48   Max: 4.44
Current: 4.36

During the past 13 years, Royal Bank of Canada's highest PS Ratio was 4.44. The lowest was 2.40. And the median was 3.48.

TSX:RY's PS Ratio is ranked worse than
81.59% of 1526 companies
in the Banks industry
Industry Median: 2.64 vs TSX:RY: 4.36

Royal Bank of Canada's Revenue per Sharefor the three months ended in Oct. 2024 was C$10.63. Its Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 was C$40.66.

Good Sign:

Royal Bank of Canada has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Royal Bank of Canada was 9.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 5.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 5.60% per year.

During the past 13 years, Royal Bank of Canada's highest 3-Year average Revenue per Share Growth Rate was 15.60% per year. The lowest was 1.80% per year. And the median was 6.60% per year.

Back to Basics: PS Ratio


Royal Bank of Canada PS Ratio Historical Data

The historical data trend for Royal Bank of Canada's PS 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.

* Premium members only.

Royal Bank of Canada PS Ratio Chart

Royal Bank of Canada Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.83 3.71 3.63 2.99 4.14

Royal Bank of Canada Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.99 3.53 3.49 3.93 4.14

Competitive Comparison of Royal Bank of Canada's PS Ratio

For the Banks - Diversified subindustry, Royal Bank of Canada's PS Ratio, along with its competitors' market caps and PS 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's PS Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Royal Bank of Canada's PS Ratio distribution charts can be found below:

* The bar in red indicates where Royal Bank of Canada's PS Ratio falls into.



Royal Bank of Canada PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Royal Bank of Canada's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=177.31/40.66
=4.36

Royal Bank of Canada's Share Price of today is C$177.31.
Royal Bank of Canada's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$40.66.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Royal Bank of Canada  (TSX:RY) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Royal Bank of Canada PS Ratio Related Terms

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Royal Bank of Canada Business Description

Address
1 Place Ville Marie, Corporate Secretary\'s Department, Montreal, QC, CAN, H3B 3A9
Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the US and other countries.
Executives
Douglas Antony Guzman Senior Officer
Erica Lesley Nielsen Senior Officer
Neil Mclaughlin Senior Officer
Simon T.p. Ridgway Director, Senior Officer
Toos Noshir Daruvala Director
David Ian Mckay Director, Senior Officer
Nadine Genevieve Ahn Senior Officer
Bruce Washington Ross Senior Officer
Helena Gottschling Senior Officer
Rod Bolger Senior Officer
Alex Douglas Mcgregor Senior Officer
Michael Dobbins Senior Officer
Jeffery William Yabuki Director