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Royal Bank of CanadaTSX:RY -0.84%73 Graham Number is C$161.71 as of Apr. 2026, which is 100% below its 10-year median of 1.15. GuruFocus rates TSX:RY with a GF Score™ of 73/100 and a GF Value™ of C$205.45 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,436 Banks companies, Royal Bank of Canada ranks worse than 95.89% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-17), the stock price of Royal Bank of Canada is C$302.13. Royal Bank of Canada's graham number for the quarter that ended in Apr. 2026 was C$161.71. Therefore, Royal Bank of Canada's Price to Graham Number ratio for today is 1.87.
The historical rank and industry rank for Royal Bank of Canada's Graham Number or its related term are showing as below:
TSX:RY'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.87 Med: 1.15 Max: 1.87
Current: 1.87
During the past 13 years, the highest Price to Graham Number ratio of Royal Bank of Canada was 1.87. The lowest was 0.87. And the median was 1.15.
TSX:RY's Price-to-Graham-Number is ranked worse than 95.89% of 1436
companies
in the Banks industry
Industry Median: 0.81
vs TSX:RY: 1.87
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Royal Bank of Canada (TSX:RY) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Royal Bank of Canada's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Apr. 2026 )
=
302.13
/
161.71
=
1.87
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Royal Bank of Canada Graham Number Related Terms
Royal Bank of Canada Graham Number Historical Data
* Premium members only.
The historical data trend for Royal Bank of Canada's Graham Number can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Diversified subindustry, Royal Bank of Canada's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Bank of Canada Price-to-Graham-Number vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royal Bank of Canada (TSX:RY) has a Graham Number of C$161.71 as of Apr. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Royal Bank of Canada and its competitors. This is 13962% above median its historical median of 1.15. Over the past decade, Royal Bank of Canada's Graham Number has ranged from 0.87 to 1.87. According to the industry distribution chart, Royal Bank of Canada ranks #1377 out of 1436 companies in the Banks industry, placing it in the top 95.9%.
Is Royal Bank of Canada's Graham Number too high?
Royal Bank of Canada's current Graham Number of C$161.71 is 13962% above median its 10-year median of 1.15. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 1.87. Based on the distribution chart, Royal Bank of Canada ranks #1377 out of 1436 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Royal Bank of Canada has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's Graham Number compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #1377 out of 1436 companies for Graham Number. This places Royal Bank of Canada in the lower half of its industry. The industry median Graham Number is 0.81. Historically, Royal Bank of Canada's own Graham Number has ranged from 0.87 to 1.87 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Banks company?
The median Graham Number among Banks companies is 0.81, based on 1,436 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median Graham Number is 0.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current Graham Number is C$161.71, which is 13962% above median its own 10-year median of 1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, Royal Bank of Canada (TSX:RY) is currently considered Significantly Overvalued. The stock's GF Value™ is C$205.45, compared to a current price of C$302.13 — trading 47.1% above its estimated fair value. The current Graham Number is C$161.71, which is 13962% above median its 10-year median of 1.15. Royal Bank of Canada's overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current Graham Number is C$161.71 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Bank of Canada (TSX:RY) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Bank of Canada stock appears to be overvalued.
The current stock price of C$302.13 is trading 47.1% above its estimated GF Value™ of C$205.45.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for TSX:RY:
Graham Number: C$161.71 (13962% above median its 10-year median of 1.15)
GF Value™: C$205.45 vs. price of C$302.13 (47.1% above fair value)
No single metric tells the full story. See the TSX:RY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Bank of Canada is one of the two largest banks in Canada, with around CAD 2.4 trillion in assets at the end of April 2026. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
73GF Score
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