Royal Bank Of Canada (RY) is overvalued and Banco Santander SA ADR (SAN) is fairly valued.
Against our estimates of intrinsic value, SAN trades at the wider discount: a margin of safety of +1%, against -43% for RY.
Values as of the 22 Sept 2026 close.
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
Book value at 1.64x, the multiple a 13.0% return on equity justifies, blended with earnings, values the shares at $14.61; the price of $14.49 is 1% below that value.
Leak Score 0/100 on 3 of 12 signals
| Metric | RY | SAN |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $203.83 | $14.49 |
| Intrinsic value | $142.28 | $14.61 |
| Margin of safety | -43% | +1% |
| Leak Score | 14/100 (3/12) | 0/100 (3/12) |
| Market cap | $282.6B | $210.8B |
| Revenue growth, 5 years | 16.8% | 13.8% |
| Operating margin | 19.5% | 15.2% |
| Net margin | 15.7% | 13.1% |
| Return on equity | 16.3% | 13.0% |
| Debt to equity | 2.88 | 4.12 |
| P/E | 17.8x | 11.4x |
| Forward P/E | 15.8x | 10.0x |
| P/B | 3.0x | 1.7x |
| Dividend yield | 2.4% | 2.1% |