Royal Bank of Canada (TSX:RY) Moat Score: 7/10 (As of Jun. 29, 2026)


TSX:RY Royal Bank of Canada TSX:RY
77 GF Score
Price C$288.01
GF Value C$204.65
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Royal Bank of Canada Moat Score?

Royal Bank of Canada TSX:RY -0.38% 77 Moat Score is 7 as of Jun. 29, 2026. GuruFocus rates TSX:RY with a GF Score™ of 77/100 and a GF Value™ of C$204.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,614 Banks companies, Royal Bank of Canada ranks better than 99.44% on this metric.

Royal Bank of Canada has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Royal Bank of Canada has Wide Moat: Royal Bank of Canada has a dominant position in the Canadian banking sector with strong brand strength, significant customer switching costs, and regulatory barriers. Its economies of scale and pricing power contribute to a durable competitive advantage.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Royal Bank of Canada might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Royal Bank of Canada  (TSX:RY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Royal Bank of Canada Moat Score Related Terms

TSX:RY vs JPM, BAC, WFC: Moat Score Comparison

For the Banks - Diversified subindustry, Royal Bank of Canada's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Banks Industry

For the Banks industry and Financial Services sector, Royal Bank of Canada's Moat Score distribution charts can be found below:

* The bar in red indicates where Royal Bank of Canada's Moat Score falls into.


TSX:RY
77GF Score
Royal Bank of Canada TSX:RY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Royal Bank of Canada (TSX:RY) has a Moat Score of 7 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Royal Bank of Canada ranks #9 out of 1614 companies in the Banks industry, placing it in the top 0.59999999999999%.
Is Royal Bank of Canada's Moat Score too high?
Royal Bank of Canada's current Moat Score is 7. Based on the distribution chart, Royal Bank of Canada ranks #9 out of 1614 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Royal Bank of Canada has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's Moat Score compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #9 out of 1614 companies for Moat Score. This places Royal Bank of Canada in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Banks company?
A good Moat Score depends on the Banks industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Royal Bank of Canada's current Moat Score is 7. 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$204.65, compared to a current price of C$288.01 — trading 40.7% above its estimated fair value. The current Moat Score is 7. Royal Bank of Canada's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current Moat Score is 7 as of Jun. 29, 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$288.01 is trading 40.7% above its estimated GF Value™ of C$204.65. GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.

Key valuation signals for TSX:RY:

  • Moat Score: 7
  • GF Value™: C$204.65 vs. price of C$288.01 (40.7% above fair value)
  • GF Score™: 77/100 with 8 warning signs

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 Business Description

Address 1 Place Ville Marie, Corporate Secretary\'s Department, Montreal, QC, CAN, H3B 3A9
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.
77GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$288.01
Price
C$204.65
GF Value