Royal Bank Of Canada (RY) is overvalued and Sumitomo Mitsui Financial Group Inc ADR (SMFG) is overvalued.
Both trade above our estimate of their intrinsic value. RY is the closer of the two: -38%, against -119% for SMFG.
Values as of the 19 Oct 2026 close.
Book value at 2.12x, the multiple a 16.3% return on equity justifies, blended with earnings, values the shares at $141.87; the price of $196.30 is 38% above that value.
Leak Score 37/100 on 9 of 12 signals
Book value at 1.52x, the multiple a 11.2% return on equity justifies, blended with earnings, values the shares at $11.15; the price of $24.41 is 119% above that value.
Leak Score 28/100 on 9 of 12 signals
| Metric | RY | SMFG |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $196.30 | $24.41 |
| Intrinsic value | $141.87 | $11.15 |
| Margin of safety | -38% | -119% |
| Leak Score | 37/100 (9/12) | 28/100 (9/12) |
| Market cap | $272.2B | $306.9B |
| Revenue growth, 5 years | 16.8% | 14.2% |
| Operating margin | 19.5% | 22.1% |
| Net margin | 15.7% | 16.4% |
| Return on equity | 16.3% | 11.2% |
| Debt to equity | 2.88 | 3.67 |
| P/E | 17.1x | 28.1x |
| Forward P/E | 15.3x | 13.9x |
| P/B | 2.9x | 3.1x |
| Dividend yield | 2.5% | 2.5% |