RY

Fairly Valued

Royal Bank of Canada — PEG Ratio Analysis

1.10

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

1.10

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$210.69

TTM EPS

$15.38

P/E Ratio

13.70

Growth Rate

12.5%

5-Year EPS CAGR

Sector

Financial Services

Banks - Diversified

Calculated

7/14/2026

3:19:20 PM

Peer Comparison

Sample Size

8 peers

Industry Median PEG

1.04

25th Percentile

0.90

75th Percentile

1.99

RY PEG (1.10) vs Industry Median (1.04): 5% premium

Symbol	Company	PEG	P/E	Growth	vs RY
WFC	Wells Fargo & Company	0.19	13.4	72.4%	-83%
CM	Canadian Imperial Bank of Commerce	0.73	11.6	15.9%	-33%
JPM	JPMorgan Chase & Co.	0.90	16.0	17.7%	-18%
BAC	Bank of America Corporation	0.95	14.8	15.6%	-14%
TD	The Toronto-Dominion Bank	1.14	14.2	12.5%	+4%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

RY

Peer Comparison

How to Interpret PEG Ratio

More on RY

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RY

Peer Comparison

How to Interpret PEG Ratio

More on RY

Compare with peers

Explore