Royal Bank Of Canada (RY) is overvalued and Wells Fargo & Co (WFC) is fairly valued.
Both trade above our estimate of their intrinsic value. WFC is the closer of the two: -5%, 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 1.40x, the multiple a 12.5% return on equity justifies, blended with earnings, values the shares at $79.44; the price of $83.15 is 5% above that value.
Leak Score 45/100 on 9 of 12 signals
| Metric | RY | WFC |
|---|---|---|
| Verdict | Overvalued | Fairly valued |
| Price | $203.83 | $83.15 |
| Intrinsic value | $142.28 | $79.44 |
| Margin of safety | -43% | -5% |
| Leak Score | 14/100 (3/12) | 45/100 (9/12) |
| Market cap | $282.6B | $251.4B |
| Revenue growth, 5 years | 16.8% | 8.6% |
| Operating margin | 19.5% | 21.9% |
| Net margin | 15.7% | 16.8% |
| Return on equity | 16.3% | 12.5% |
| Debt to equity | 2.88 | 2.57 |
| P/E | 17.8x | 12.1x |
| Forward P/E | 15.8x | 10.4x |
| P/B | 3.0x | 1.5x |
| Dividend yield | 2.4% | 2.3% |