Royal Bank Of Canada (RY) is overvalued and Toronto Dominion Bank (TD) is overvalued.
Both trade above our estimate of their intrinsic value. RY is the closer of the two: -41%, against -50% for TD.
Values as of the 20 Oct 2026 close.
Book value at 2.11x, the multiple a 16.3% return on equity justifies, blended with earnings, values the shares at $141.46; the price of $199.05 is 41% above that value.
Leak Score 37/100 on 9 of 12 signals
Book value at 1.64x, the multiple a 12.9% return on equity justifies, blended with earnings, values the shares at $81.21; the price of $122.13 is 50% above that value.
Leak Score 51/100 on 9 of 12 signals
| Metric | RY | TD |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $199.05 | $122.13 |
| Intrinsic value | $141.46 | $81.21 |
| Margin of safety | -41% | -50% |
| Leak Score | 37/100 (9/12) | 51/100 (9/12) |
| Market cap | $276.0B | $206.3B |
| Revenue growth, 5 years | 16.8% | 16.4% |
| Operating margin | 19.5% | 18.1% |
| Net margin | 15.7% | 13.8% |
| Return on equity | 16.3% | 12.9% |
| Debt to equity | 2.88 | 2.35 |
| P/E | 17.4x | 18.1x |
| Forward P/E | 15.5x | 15.2x |
| P/B | 2.9x | 2.5x |
| Dividend yield | 2.5% | 2.6% |