Royal Bank of CanadaTSX:RY -0.38%77 Pretax Margin % is 40.76% as of Apr. 2026, which is 14% above its 10-year median of 35.91. 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 1,527 Banks companies, Royal Bank of Canada ranks better than 64.7% on this metric.
The historical rank and industry rank for Royal Bank of Canada's Pretax Margin % or its related term are showing as below:
TSX:RY'
s Pretax Margin % Range Over the Past 10 Years
Min: 30.55 Med: 35.91 Max: 41.65
Current: 40.59
TSX:RY's Pretax Margin % is ranked better than 64.7% of 1527
companies
in the Banks industry
Industry Median: 34.88
vs TSX:RY: 40.59
Royal Bank of Canada (TSX:RY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Royal Bank of Canada Pretax Margin % Related Terms
Royal Bank of Canada Pretax Margin % Historical Data
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The historical data trend for Royal Bank of Canada's Pretax Margin % 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.
TSX:RY vs JPM, BAC, WFC: Pretax Margin % Comparison
For the Banks - Diversified subindustry, Royal Bank of Canada's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's Pretax Margin % 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 Pretax Margin % of 40.76% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Royal Bank of Canada and its competitors. This is 14% above median its historical median of 35.91. Over the past decade, Royal Bank of Canada's Pretax Margin % has ranged from 30.55 to 41.65. According to the industry distribution chart, Royal Bank of Canada ranks #539 out of 1527 companies in the Banks industry, placing it in the top 35.3%.
Is Royal Bank of Canada's Pretax Margin % too high?
Royal Bank of Canada's current Pretax Margin % of 40.76% is 14% above median its 10-year median of 35.91. Over the past 10 years, this metric has ranged from a low of 30.55 to a high of 41.65. The Banks industry median Pretax Margin % is 34.88. Royal Bank of Canada's value of 40.76% is 16.9% above this industry median. Based on the distribution chart, Royal Bank of Canada ranks #539 out of 1527 companies in the Banks industry, which is above the industry midpoint. 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 Pretax Margin % compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #539 out of 1527 companies for Pretax Margin %. This puts Royal Bank of Canada in the upper half of its industry. The industry median Pretax Margin % is 34.88. Royal Bank of Canada's value of 40.76% is 16.9% above this benchmark. Historically, Royal Bank of Canada's own Pretax Margin % has ranged from 30.55 to 41.65 over the past decade. While the company's 10-year median is 35.91 vs. the industry median of 34.88, Royal Bank of Canada has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current Pretax Margin % of 40.76% is 16.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current Pretax Margin % is 40.76%, which is 14% above median its own 10-year median of 35.91. 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 Pretax Margin % is 40.76%, which is 14% above median its 10-year median of 35.91 and 16.9% above the Banks industry median of 34.88. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current Pretax Margin % is 40.76% 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$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:
Pretax Margin %: 40.76% (14% above median its 10-year median of 35.91)
GF Value™: C$204.65 vs. price of C$288.01 (40.7% above fair value)
Industry Position: 16.9% above the Banks median (#539 of 1527)
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.
77GF Score
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