Royal Bank Valuation
| RY Stock | CAD 136.41 1.38 1.02% |
At this time, the company appears to be fairly valued. Royal Bank holds a recent Real Value of C$134.62 per share. The prevailing price of the company is C$136.41. Our model determines the value of Royal Bank from analyzing the company fundamentals such as Shares Outstanding of 1.41 B, operating margin of 0.37 %, and Return On Equity of 0.14 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Royal Bank's valuation include:
Price Book 1.7704 | Enterprise Value -30.2 B | Price Sales 3.5847 | Forward PE 12.0048 | Trailing PE 12.654 |
Fairly Valued
Today
Please note that Royal Bank's price fluctuation is very steady at this time. Calculation of the real value of Royal Bank is based on 3 months time horizon. Increasing Royal Bank's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Royal Bank of is useful when determining the fair value of the Royal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Royal Bank. Since Royal Bank is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Royal Stock. However, Royal Bank's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 136.41 | Real 134.62 | Hype 136.3 | Naive 134.23 |
The real value of Royal Stock, also known as its intrinsic value, is the underlying worth of Royal Bank Company, which is reflected in its stock price. It is based on Royal Bank's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Royal Bank's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Royal Bank's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Royal Bank of helps investors to forecast how Royal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Royal Bank more accurately as focusing exclusively on Royal Bank's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Royal Bank's intrinsic value based on its ongoing forecasts of Royal Bank's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Royal Bank's closest peers. When choosing an evaluation method for Royal Bank, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Royal Bank Investments |
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Royal Valuation Trend
Knowing Royal Bank's actual value is paramount for traders to make sound investment determinations. Royal Bank's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Royal Bank's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Royal Bank's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Royal Market Cap
Royal Bank of is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 203.42 Billion. Royal Bank totals roughly 192.87 Billion in market capitalization claiming about 95% of equities under Financials industry.Royal Bank Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Royal Bank's current stock value. Our valuation model uses many indicators to compare Royal Bank value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Royal Bank competition to find correlations between indicators driving Royal Bank's intrinsic value. More Info.Royal Bank of is currently regarded as top stock in price to earning category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about 0.11 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Royal Bank of is roughly 9.43 . As of the 25th of April 2024, Price To Book Ratio is likely to grow to 1.50. Comparative valuation analysis is a catch-all model that can be used if you cannot value Royal Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Bank's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Royal Bank's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Royal Bank's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Royal Bank and how it compares across the competition.
About Royal Bank Valuation
The stock valuation mechanism determines the current worth of Royal Bank of on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Royal Bank of. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Royal Bank based exclusively on its fundamental and basic technical indicators. By analyzing Royal Bank's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Royal Bank's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Royal Bank. We calculate exposure to Royal Bank's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Royal Bank's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 56.1 B | 58.9 B | |
| Pretax Profit Margin | 0.30 | 0.24 | |
| Operating Profit Margin | 0.38 | 0.36 | |
| Net Profit Margin | 0.24 | 0.17 | |
| Gross Profit Margin | 0.84 | 0.71 |
Royal Bank Quarterly Retained Earnings |
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8 Steps to conduct Royal Bank's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Royal Bank's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Royal Bank's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Royal Bank's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Royal Bank's revenue streams: Identify Royal Bank's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Royal Bank's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Royal Bank's growth potential: Evaluate Royal Bank's management, business model, and growth potential.
- Determine Royal Bank's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Royal Bank's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Royal Bank of. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Royal Stock analysis
When running Royal Bank's price analysis, check to measure Royal Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royal Bank is operating at the current time. Most of Royal Bank's value examination focuses on studying past and present price action to predict the probability of Royal Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royal Bank's price. Additionally, you may evaluate how the addition of Royal Bank to your portfolios can decrease your overall portfolio volatility.
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