What changed
$RY — AVOID 📊 | 6 MONTHS THESIS
🎯 latest | Rev $17.4B | EPS $3.90 vs $3.79 🟢
💡 Consensus expects steady performance, overlooking that the current P/E is unsustainably high given cyclical risks and historical mean reversion. The market has priced in near-perfect execution, ignoring that Canadian banks typically revert to 7-11x P/E when credit costs rise.
📉 Reward/risk: 0.6:1
🏢 Business Quality: 7/10
📊 Valuation: rich — P/E 16.3x current vs base 11.3x ($140.35), bull 20.6x ($255.86), bear 7.3x ($90.67); EV/EBITDA also elevated vs sector.
🔮 Catalyst: Next quarterly earnings or macroeconomic data (Q3 2026)
💰 Entry: $202.16, stop $180.0, target $255.86
⚖️ Avoid RY: the stock is priced for perfection at 16.3x earnings, offering a subpar 0.6:1 reward/risk ratio with significant downside to $140 if P/E reverts to historical norms.
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/RY0625