Bank of MontrealTSX:BMO +0.59%71 ROE % is 12.27% as of Apr. 2026, which is 6% above its 10-year median of 11.61. GuruFocus rates TSX:BMO with a GF Score™ of 71/100 and a GF Value™ of C$159.88 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,527 Banks companies, Bank of Montreal ranks better than 57.96% on this metric.
The historical rank and industry rank for Bank of Montreal's ROE % or its related term are showing as below:
TSX:BMO'
s ROE % Range Over the Past 10 Years
Min: 6.01 Med: 11.61 Max: 21.06
Current: 11.27
During the past 13 years, Bank of Montreal's highest ROE % was 21.06%. The lowest was 6.01%. And the median was 11.61%.
TSX:BMO's ROE % is ranked better than 57.96% of 1527
companies
in the Banks industry
Industry Median: 10.23
vs TSX:BMO: 11.27
Bank of Montreal (TSX:BMO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Bank of Montreal ROE % Related Terms
Bank of Montreal ROE % Historical Data
* Premium members only.
The historical data trend for Bank of Montreal's ROE % 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, Bank of Montreal's ROE %, along with its competitors' market caps and ROE % 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.
Bank of Montreal ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of Montreal's ROE % distribution charts can be found below:
* The bar in red indicates where Bank of Montreal's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Bank of Montreal (TSX:BMO) has a ROE % of 12.27% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bank of Montreal and its competitors. This is near median its historical median of 11.61. Over the past decade, Bank of Montreal's ROE % has ranged from 6.01 to 21.06. According to the industry distribution chart, Bank of Montreal ranks #642 out of 1527 companies in the Banks industry, placing it in the top 42%.
Is Bank of Montreal's ROE % too high?
Bank of Montreal's current ROE % of 12.27% is near median its 10-year median of 11.61. Over the past 10 years, this metric has ranged from a low of 6.01 to a high of 21.06. The Banks industry median ROE % is 10.23. Bank of Montreal's value of 12.27% is 19.9% above this industry median. Based on the distribution chart, Bank of Montreal ranks #642 out of 1527 companies in the Banks industry, which is above the industry midpoint. Overall, Bank of Montreal has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Montreal's ROE % compare to JPM and BAC?
According to the Banks industry distribution chart, Bank of Montreal ranks #642 out of 1527 companies for ROE %. This puts Bank of Montreal in the upper half of its industry. The industry median ROE % is 10.23. Bank of Montreal's value of 12.27% is 19.9% above this benchmark. Historically, Bank of Montreal's own ROE % has ranged from 6.01 to 21.06 over the past decade. While the company's 10-year median is 11.61 vs. the industry median of 10.23, Bank of Montreal 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.23, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bank of Montreal's current ROE % of 12.27% is 19.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bank of Montreal and its competitors. For the Banks industry, the median ROE % is 10.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of Montreal's current ROE % is 12.27%, which is near median its own 10-year median of 11.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Montreal stock overvalued right now?
Based on GuruFocus' analysis, Bank of Montreal (TSX:BMO) is currently considered Significantly Overvalued. The stock's GF Value™ is C$159.88, compared to a current price of C$250.13 — trading 56.4% above its estimated fair value. The current ROE % is 12.27%, which is near median its 10-year median of 11.61 and 19.9% above the Banks industry median of 10.23. Bank of Montreal's overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Bank of Montreal (TSX:BMO), the current ROE % is 12.27% 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 Bank of Montreal (TSX:BMO) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of Montreal stock appears to be overvalued.
The current stock price of C$250.13 is trading 56.4% above its estimated GF Value™ of C$159.88.
GuruFocus considers Bank of Montreal to be Significantly Overvalued.
Key valuation signals for TSX:BMO:
ROE %: 12.27% (near median its 10-year median of 11.61)
GF Value™: C$159.88 vs. price of C$250.13 (56.4% above fair value)
Industry Position: 19.9% above the Banks median (#642 of 1527)
No single metric tells the full story. See the TSX:BMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of Montreal is a diversified financial services provider based in North America with over CAD 1.47 trillion in assets by the end of fiscal 2025. BMO operates four business segments: Canadian personal and commercial banking, US personal and commercial banking, wealth management, and capital markets. About 60% of BMO's earnings are generated in Canada and 40% in the US.
71GF Score
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