Bank Of America Corp vs Royal Bank Of Canada

Bank Of America Corp (BAC) is slightly overvalued and Royal Bank Of Canada (RY) is overvalued.

Both trade above our estimate of their intrinsic value. BAC is the closer of the two: -19%, against -43% for RY.

Values as of the 22 Sept 2026 close.

Bank Of America Corp (BAC)

Book value at 1.07x, the multiple a 11.3% return on equity justifies, blended with earnings, values the shares at $47.17; the price of $56.20 is 19% above that value.

Leak Score 38/100 on 9 of 12 signals

Royal Bank Of Canada (RY)

Book value at 2.14x, the multiple a 16.3% return on equity justifies, blended with earnings, values the shares at $142.28; the price of $203.83 is 43% above that value.

Leak Score 14/100 on 3 of 12 signals

MetricBACRY
VerdictSlightly overvaluedOvervalued
Price$56.20$203.83
Intrinsic value$47.17$142.28
Margin of safety-19%-43%
Leak Score38/100 (9/12)14/100 (3/12)
Market cap$393.0B$282.6B
Revenue growth, 5 years15.4%16.8%
Operating margin21.3%19.5%
Net margin16.5%15.7%
Return on equity11.3%16.3%
Debt to equity2.472.88
P/E12.9x17.8x
Forward P/E10.7x15.8x
P/B1.4x3.0x
Dividend yield2.1%2.4%

All stocks in Banks - Diversified