Q: Some experts talk about a bank being attractive or expensive at a certain PE. For Canadian banks for example attractive at PE 10 and expensive at PE 15. Do you consider RY a sell right now or should one disregard this approach.
5i Research Answer:
RY is one the high side of bank historical valuations, certainly, but we would not sell just on this one metric. Loan losses are better than expected, the dividend is expected to continue to grow, and earnings should grow into the valuation over time.