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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-21), Royal Bank of Canada's 1-Year Sharpe Ratio is 2.14.
Royal Bank of Canada (NYSE:RY) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Royal Bank of Canada 1-Year Sharpe Ratio Related Terms
RY vs JPM, BAC, WFC: 1-Year Sharpe Ratio Comparison
For the Banks - Diversified subindustry, Royal Bank of Canada's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's 1-Year Sharpe Ratio falls into.
Royal Bank of Canada 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Royal Bank of Canada (RY) has a 1-Year Sharpe Ratio of 2.14 as of Jul. 21, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Royal Bank of Canada and its competitors.
Is Royal Bank of Canada's 1-Year Sharpe Ratio too high?
Royal Bank of Canada's current 1-Year Sharpe Ratio is 2.14. Overall, Royal Bank of Canada has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's 1-Year Sharpe Ratio compare to JPM and BAC?
Royal Bank of Canada's 1-Year Sharpe Ratio of 2.14 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Banks company?
A good 1-Year Sharpe Ratio depends on the Banks industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Royal Bank of Canada and its competitors. Royal Bank of Canada's current 1-Year Sharpe Ratio is 2.14. 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 $146.29, compared to a current price of $210.88 — trading 44.2% above its estimated fair value. The current 1-Year Sharpe Ratio is 2.14. Royal Bank of Canada's overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Royal Bank of Canada (RY), the current 1-Year Sharpe Ratio is 2.14 as of Jul. 21, 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 $210.88 is trading 44.2% above its estimated GF Value™ of $146.29.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for RY:
1-Year Sharpe Ratio: 2.14
GF Value™: $146.29 vs. price of $210.88 (44.2% above fair value)
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.
73GF Score
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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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