| RY Stock | | | CAD 177.31 0.11 0.06% |
Taking into consideration Royal Bank's profitability measurements, Royal Bank of may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Royal Bank's ability to earn profits and add value for shareholders. At this time, Royal Bank's
Days Sales Outstanding is very stable compared to the past year. As of the 15th of December 2024,
EV To Sales is likely to grow to 6.42, while
Price To Sales Ratio is likely to drop 2.13. At this time, Royal Bank's
Income Quality is very stable compared to the past year.
For Royal Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Bank to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Royal Bank of utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Bank of over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Royal Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Royal Bank Price To Book vs. Return On Asset Fundamental Analysis
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.
Royal Bank of is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in price to book category among its peers fabricating about
265.52 of Price To Book per Return On Asset. As of the 15th of December 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.
Royal Price To Book vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Royal Bank | Return On Asset | = | Net IncomeTotal Assets |
| = | 0.008 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Royal Bank | P/B | = | MV Per ShareBV Per Share |
| = | 2.12 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Royal Price To Book Comparison
Royal Bank is currently under evaluation in price to book category among its peers.
Royal Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Bank will eventually generate negative long term returns. The profitability progress is the general direction of Royal Bank's change in net profit over the period of time. It can combine
multiple indicators of Royal Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Royal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Royal Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Royal Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Royal Bank's important profitability drivers and their relationship over time.
Use Royal Bank in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Royal Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Royal Bank will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Royal Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Royal Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Royal Bank of to buy it.
The correlation of Royal Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Royal Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Royal Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Royal Bank position
In addition to having Royal Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Monster Funds
Solid funds with above average long term performance indicators based on Macroaxis rating system. The Monster Funds theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
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thematic opportunities.
When determining whether Royal Bank offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Royal Bank's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Royal Bank Of Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Royal Bank Of Stock: Check out
Your Equity Center.
You can also try the
Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Royal Bank's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Royal Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Royal Bank's income statement, its balance sheet, and the statement of cash flows.
Potential Royal Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Royal Bank investors may work on each financial statement separately, they are all related. The changes in Royal Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Royal Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
