Royal Bank of Canada (TSX:RY) Risk Assessment


TSX:RY Royal Bank of Canada TSX:RY
77 GF Score
Price C$298.81
GF Value C$205.37
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Royal Bank of Canada Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Royal Bank of Canada is: High Risk: High uncertainty with risk-return tradeoff.

Royal Bank of Canada  (TSX:RY) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Royal Bank of Canada Risk Assessment Related Terms

TSX:RY vs JPM, BAC, WFC: Risk Assessment Comparison

For the Banks - Diversified subindustry, Royal Bank of Canada's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Banks Industry

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

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


TSX:RY
77GF Score
Royal Bank of Canada TSX:RY
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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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:

  • Risk Assessment:
  • GF Value™: C$205.37 vs. price of C$298.81 (45.5% above fair value)
  • GF Score™: 77/100 with 8 warning signs

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 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, 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 TSX:RY

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$298.81
Price
C$205.37
GF Value