Stock fact sheet · data as of
Royal Bank of Canada (RY): fair value, margin of safety and Wheel Score
Ticker symbol RY · Financial Services · Banks - Diversified · Canada · Blend
Is RY undervalued?
RY has a margin of safety of 31%: the stock closed at 209.79 on 5 Nov 2026 against a GLS average fair value of 305.64. 4 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (64.01) and Payback Time (857.39). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for RY, so the nightly engine files it under Blend (value score 44, growth score 48, out of 100).
Nine valuation models for RY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 189.83 | -10% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 137.96 | -34% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 222.87 | +6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 64.01 | -69% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 520.03 | +148% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 555.10 | +165% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 857.39 | +309% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 72.97 | -65% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 130.61 | -38% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,024.03 | -588% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 225.00 | +7% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Royal Bank of Canada scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.6/10 puts RY among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are thin or negative - ROIC 2.1%, ROE 14.6%, ROA 0.9% - with debt at 6.00 times equity and a free-cash-flow yield of 11.3%. Debt of 6.00 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.36% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.1% |
|---|---|---|---|
| GLS Moat | 7.6 / 10 | ROE | 14.6% |
| Debt / equity | 6.00 | ROA | 0.9% |
| Free-cash-flow yield | 11.3% | Payout ratio | 41% |
| Institutions | 8 / 10 | Insiders · Congress | 5 · 1 / 10 |
Wheel Score 81: Good
With a Wheel Score of 81 - the Good band - Royal Bank of Canada passes all 9 Wheel Trade Filters. How it ranks: value strong, premium fair, moat good, health good, red flags strong, option trading fair, stability strong. Premium (fair) is the part keeping it out of the Prime band.
Implied volatility is 26% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 23,868 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 837k shares a day on a market cap of $290.9B, with a beta of 0.91; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 31% below fair value | |
| Premium | Fair | implied volatility 26% | |
| Moat | Good | moat 7.6/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Fair | 2,134 contracts a day, 23,868 open interest | |
| Stability | Strong | beta 0.91, $290.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Dec 2026 (before the open), 28 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Diversified
The 12 companies below are the closest to Royal Bank of Canada by market cap within the Banks - Diversified industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HSBC HSBC Holdings plc | 89.37 | 147.87 | +40% | 49Weak | $311.8B |
| WFC Wells Fargo & Company | 87.43 | 158.36 | +45% | 84Good | $262.5B |
| MUFG Mitsubishi UFJ Financial Group, Inc. | 21.97 | 30.73 | +29% | 87Prime | $248.2B |
| BAC Bank of America Corporation | 51.63 | 118.20 | +56% | 81Good | $356.3B |
| BACRP Bank of America Corporation PFD SER B 7% | 192.00 | 301.46 | +36% | 32No options | $359.1B |
| TD The Toronto-Dominion Bank | 128.20 | 133.06 | +4% | 70Good | $216.6B |
| C Citigroup Inc. | 124.75 | 174.18 | +28% | 52Fair | $209.3B |
| SAN Banco Santander, S.A. | 12.07 | 38.86 | +69% | 48Weak | $179.8B |
| UBS UBS Group AG | 50.67 | 77.43 | +35% | 80Good | $155.1B |
| BBVA Banco Bilbao Vizcaya Argentaria, S.A. | 25.47 | 52.66 | +52% | 49Weak | $140.8B |
| BMO Bank of Montreal | 177.47 | 317.92 | +44% | 81Good | $123.4B |
| BNS The Bank of Nova Scotia | 96.43 | 136.01 | +29% | 47Weak | $117.5B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RY
Is RY undervalued right now?
By the GLS models, yes: at 209.79 the stock is 31% below the average fair value of 305.64 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RY and what does it mean?
RY scores 81 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for RY?
305.64 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Royal Bank of Canada report earnings next?
The next earnings report is due on 3 Dec 2026 (before the open), 28 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does RY have listed options, and how liquid are they?
Yes. The nightly snapshot found 142 listed contracts with 23,868 open interest across all expiries and implied volatility of 26% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.