Has the Canadian Financials Sector valuation changed over the past few years?

Investors are optimistic on the Canadian Financials industry, and appear confident in long term growth rates. The industry is trading at a PE ratio of 19.2x which is higher than its 3-year average PE of 14.9x. The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.3x.

Which industries have driven the changes within the Canadian Financials sector?

Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 37.3x. Analysts are expecting annual earnings growth of 13.1%, which is lower than the prior year's growth of 37.5% per year.

Canadian (TSX) Financials Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sun, 16 Aug 2026	CA$2.1t	CA$628.0b	CA$107.9b	12.5x	19.2x	3.3x
Tue, 14 Jul 2026	CA$2.0t	CA$622.2b	CA$106.3b	14.1x	19.2x	3.3x
Thu, 11 Jun 2026	CA$1.9t	CA$619.3b	CA$106.0b	13.3x	18x	3.1x
Sat, 09 May 2026	CA$1.8t	CA$612.6b	CA$108.9b	13.7x	16.6x	3x
Mon, 06 Apr 2026	CA$1.7t	CA$614.3b	CA$109.2b	13.4x	15.2x	2.7x
Wed, 04 Mar 2026	CA$1.7t	CA$611.5b	CA$109.8b	12x	15.5x	2.8x
Fri, 30 Jan 2026	CA$1.7t	CA$597.4b	CA$103.7b	13.8x	16.1x	2.8x
Sun, 28 Dec 2025	CA$1.7t	CA$599.6b	CA$103.8b	12.6x	16.4x	2.8x
Tue, 25 Nov 2025	CA$1.6t	CA$600.5b	CA$102.4b	12.5x	15.7x	2.7x
Thu, 23 Oct 2025	CA$1.6t	CA$600.5b	CA$100.6b	12.9x	15.7x	2.6x
Sat, 20 Sep 2025	CA$1.6t	CA$598.1b	CA$100.4b	13.4x	15.7x	2.6x
Mon, 18 Aug 2025	CA$1.5t	CA$590.6b	CA$94.7b	13.5x	15.8x	2.5x
Wed, 16 Jul 2025	CA$1.5t	CA$589.6b	CA$92.0b	12.5x	15.9x	2.5x
Fri, 13 Jun 2025	CA$1.4t	CA$588.1b	CA$91.9b	12.3x	15.3x	2.4x
Sun, 11 May 2025	CA$1.4t	CA$575.5b	CA$81.2b	12.5x	17x	2.4x
Tue, 08 Apr 2025	CA$1.3t	CA$583.3b	CA$81.7b	12.1x	15.4x	2.2x
Thu, 06 Mar 2025	CA$1.3t	CA$583.5b	CA$82.8b	12.8x	16.1x	2.3x
Sat, 01 Feb 2025	CA$1.3t	CA$592.3b	CA$82.5b	12.6x	15.8x	2.2x
Mon, 30 Dec 2024	CA$1.3t	CA$590.7b	CA$82.4b	12.9x	15.5x	2.2x
Wed, 27 Nov 2024	CA$1.3t	CA$588.9b	CA$80.1b	12.8x	15.9x	2.2x
Fri, 25 Oct 2024	CA$1.2t	CA$588.1b	CA$78.2b	12.6x	15.7x	2.1x
Sun, 22 Sep 2024	CA$1.2t	CA$584.1b	CA$78.0b	12.4x	15.3x	2x
Tue, 20 Aug 2024	CA$1.1t	CA$581.5b	CA$80.0b	11.5x	13.8x	1.9x
Thu, 18 Jul 2024	CA$1.1t	CA$575.4b	CA$78.6b	11.7x	13.9x	1.9x
Sat, 15 Jun 2024	CA$1.0t	CA$576.0b	CA$78.6b	11x	13.2x	1.8x
Mon, 13 May 2024	CA$1.1t	CA$571.1b	CA$78.3b	11.3x	13.6x	1.9x
Wed, 10 Apr 2024	CA$1.1t	CA$576.3b	CA$79.9b	10.8x	13.3x	1.8x
Fri, 08 Mar 2024	CA$1.1t	CA$594.1b	CA$79.8b	11.4x	13.2x	1.8x
Sun, 04 Feb 2024	CA$1.0t	CA$585.4b	CA$80.9b	10.7x	12.5x	1.7x
Tue, 02 Jan 2024	CA$1.0t	CA$582.5b	CA$80.8b	9.9x	12.7x	1.8x
Thu, 30 Nov 2023	CA$944.7b	CA$563.4b	CA$88.5b	9.3x	10.7x	1.7x
Sat, 28 Oct 2023	CA$864.5b	CA$591.0b	CA$84.6b	9.6x	10.2x	1.5x
Mon, 25 Sep 2023	CA$941.9b	CA$585.7b	CA$84.5b	9.9x	11.2x	1.6x
Wed, 23 Aug 2023	CA$930.3b	CA$601.5b	CA$86.1b	10.2x	10.8x	1.5x


CA Market	0.97%
Financials	1.31%
Diversified Financial	3.50%
Banks	2.21%
Capital Markets	0.81%
Mortgage Finance	0%	0
Insurance	-0.86%
Consumer Finance	-6.87%

Company	Last Price	7D	1Y	Valuation
RY Royal Bank of Canada	CA$300.70	2.1% +CA$8.5b	59.5%	PB3.2x
CM Canadian Imperial Bank of Commerce	CA$171.76	3.7% +CA$5.6b	68.4%	PB2.5x
TD Toronto-Dominion Bank	CA$172.61	2.0% +CA$5.5b	68.6%	PB2.3x
BNS Bank of Nova Scotia	CA$126.98	2.4% +CA$3.6b	61.8%	PB1.8x
BAM Brookfield Asset Management	CA$75.35	3.0% +CA$3.5b	-11.2%	PE30.9x

Announcement • Aug 15

Brookfield Asset Management Ltd. (TSX:BAM), together with its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN), and La Caisse de dépôt et placement du Québec completed the acquisition of 85% stake in Boralex Inc. (TSX:BLX).

Brookfield Asset Management Ltd. (TSX:BAM), together with its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN), and La Caisse de dépôt et placement du Québec entered into a definitive agreement to acquire 85% stake in Boralex Inc. (TSX:BLX) for CAD 3.3 billion on March 25, 2026. Under the terms of the agreement, La Caisse will increase its ownership to 30% from 15% stake with Brookfield acquiring the remaining 70% stake in Boralex for CAD 37.25 per share. Upon completion of the transaction, it is expected that Boralex's common shares will be delisted from the TSX, and, following closing, Boralex will cease to be a reporting issuer under applicable Canadian securities laws. Boralex will operate independently following close of the transaction. In case of termination of transaction, a termination fee of CAD 115 million would be payable by Boralex in certain circumstances, including in the context of a superior proposal supported by Boralex. Boralex would also be entitled to a reverse termination fee of CAD 172 million in certain circumstances. Holders of approximately 15.4% of the common shares of Boralex, including La Caisse de dépôt et placement du Québec, have agreed to vote their outstanding Common Shares in favor of the transaction. The Board of Directors of Boralex Inc., after receiving the unanimous recommendation of the Special Committee, as well as advice from its financial advisors and outside legal counsel, is unanimously recommending that shareholders vote in favor of the transaction. The transaction is subject to regulatory approvals, required approvals from Boralex’s shareholders, court approval as well as the satisfaction of other customary closing conditions. As of May 21, 2026, Boralex obtained two of the Key Regulatory Approvals outlined in the Circular, namely the Competition Act Approval and the HSR Clearance. The deal has been unanimously approved by the Board of Directors of Boralex. The transaction is expected to close in Q4 2026. On June 4, 2026, Boralex Inc. announced that its shareholders have approved the transaction. As of June 5, 2026, parties obtained a final order from the Superior Court of Québec approving the transaction. On August 6, 2026, Boralex received all regulatory approvals. The Arrangement will be completed on or about August 14, 2026. RBC Capital Markets Inc. and National Bank Capital Markets acted as financial advisors and fairness opinion providers for Boralex Inc. CIBC Capital Markets acted as financial advisor for La Caisse de dépôt et placement du Québec. Desjardins Capital Markets acted as financial advisor and fairness opinion provider for the special committee of Boralex Inc. BMO Capital Markets acted as financial advisor for Brookfield Asset Management Ltd. The team of Davies Ward Phillips & Vineberg LLP led by Sébastien Roy, Marie-Emmanuelle Vaillancourt and Jim Dinning acted as legal advisor for La Caisse de dépôt et placement du Québec. The team of McCarthy Tétrault LLP led by Hadrien Montagne, Jonathan See, Louis-Charles Filiatrault, Jacob Stone, Eve Tessier, Zawadzki, Elisa Laxer, Ian Mak, Raj Juneja, Kabir Jamal, Jason Gudofsky, Gideon Kwinter, Isabel Henkelman, Mary Pagonis, Julianne Gu, Kimberly Howard, Laura Weingarden, Cindy Vaillancourt, Kelleher Lynch, Conrad Lee, François Giroux, Geneviève St-Cyr Larkin and Robert Glasgow acted as legal advisor for Brookfield Asset Management Ltd. The team of Stikeman Elliott LLP led by David Massé, Antoine Champagne, Franco Gadoury, Nicholas Blach, Dominique Rolland, Dennis Langen, Michael Laskey, Maxime Jacquin, Lanette Wilkinson, Jordan Fremont, Evelyne Poirier, Stéphanie Lapierre and Guillaume Boudreau-Simard. June Dipchand of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors for Boralex Inc. Computershare Investor Services Inc acted as transfer agent to Boralex. The Laurel Hill Advisory Group LLC acted as proxy solicitor to Boralex and will receive a fee of CAD 0.2 million. Brookfield Asset Management Ltd. (TSX:BAM), together with its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN), and La Caisse de dépôt et placement du Québec completed the acquisition of 85% stake in Boralex Inc. (TSX:BLX) on August 14 2026. As a result of the completion of the Arrangement, it is expected that the Shares will be delisted from the Toronto Stock Exchange on or about August 17, 2026.

Announcement • Aug 11

Bank Of Montreal and REX Shares Launch MicroSectors 3× Long And -3× Short High Yield And Investment Grade Corporate Bond ETNs

Bank of Montreal and REX Shares, LLC announced the launch of the following Exchange Traded Notes issued by Bank of Montreal: MicroSectors 3× Long High Yield Corporate Bond (HYG) ETNs due July 31, 2046 (the HYGU ETNs), MicroSectors -3× Short High Yield Corporate Bond (HYG) ETNs due July 31, 2046 (the HYGD ETNs), MicroSectors 3× Long Investment Grade Corporate Bond (LQD) ETNs due July 31, 2046 (the LQDU ETNs), MicroSectors -3× Short Investment Grade Corporate Bond (LQD) ETNs due July 31, 2046 (the LQDD ETNs). The ETNs will start trading on the Cboe BZX Exchange Inc. under the applicable ticker symbol identified above. Each series of ETNs is intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the relevant index, before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage. The HYGU ETNs and the HYGD ETNs are linked to the VettaFi High Yield Corporate Bond Fund-Tracking Index, a total return index created, sponsored and maintained by VettaFi LLC that tracks the performance of the iShares iBoxx $High Yield Corporate Bond ETF (HYG) and is designed to provide exposure to U.S. dollar-denominated high-yield corporate debt through a single fund-tracking vehicle. The ticker symbol of the VettaFi High Yield Corporate Bond Fund-Tracking Index is VHYGF. The LQDU ETNs and the LQDD ETNs are linked to the VettaFi Investment Grade Corporate Bond Fund-Tracking Index, a total return index created, sponsored and maintained by VettaFi LLC that tracks the performance of the iShares iBoxx $Investment Grade Corporate Bond ETF (LQD) and is designed to provide exposure to U.S. dollar-denominated investment-grade corporate debt through a single fund-tracking vehicle. The ticker symbol of the VettaFi Investment Grade Corporate Bond Fund-Tracking Index is VLQDF. The ETNs are the first U.S.-listed exchange-traded products designed to provide 3× leveraged long and short exposure to the daily performance of HYG and LQD, two of the most actively traded U.S.-listed bond ETFs. The ETNs are not intended to be buy and hold investments and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3× leveraged long or short, as applicable, exposure to the performance of the relevant index on a daily basis, before taking into account the negative effect of the fees and charges. However, as a result of the daily resetting of the leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long or short investment in the relevant index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives and are not suitable for investors who plan to hold them for a period of more than one day or who have a buy and hold strategy. Investors should actively and continuously monitor their investments in the ETNs on an intraday basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the relevant index, and returns on the ETNs may be negatively affected in complex ways by the volatility of the relevant index on a daily or intraday basis. It is possible that investors will suffer significant losses in the ETNs that provide leveraged long exposure even if the long-term performance of the relevant index is positive. Similarly, it is possible that investors will suffer significant losses in the ETNs that provide short leveraged exposure even if the long-term performance of the relevant index is negative. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide leveraged exposure to the long or short, as applicable, performance of the relevant index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time. The ETN Prospectus relating to each series of ETNs can be found on EDGAR, the Securities and Exchange Commission website, as well as on the product websites. Bank of Montreal, the issuer of each series of ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding each series of the ETNs. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. The ETNs are senior, unsecured obligations of Bank of Montreal, and are subject to Bank of Montreal's credit risk. Investment suitability must be determined individually for each investor, and the ETNs are not suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters. MicroSectors and REX are trademarks of REX. The trademarks have been licensed to Bank of Montreal for use for certain purposes by REX. The VettaFi High Yield Corporate Bond Fund-Tracking Index and the VettaFi Investment Grade Corporate Bond Fund-Tracking Index are service marks of VettaFi and have been licensed for use by REX and Bank of Montreal. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors. REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the indices to track the relevant segments of the corporate bond market.

Canadian (TSX) Financials Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

RBC Awarded for AI Retail Credit Overhaul as Year-to-Date Gains Reach 28%

Brookfield Delivers 15% EPS Growth Completes Oaktree and Just Group Acquisitions

Brookfield Asset Management Ltd. (TSX:BAM), together with its institutional partners including Brookfield Renewable Partners L.P. (TSX:BEP.UN), and La Caisse de dépôt et placement du Québec completed the acquisition of 85% stake in Boralex Inc. (TSX:BLX).

NA: Future Returns Will Reflect Dividend Support And Measured Repricing Of Earnings Multiples

CM: Future Returns Will Reflect Q2 Execution And Emerging AI Initiatives

Retirement And Wealth Tailwinds Will Support A Stronger Long-Term Earnings Profile

Sun Life Financial Inc. Announces Executive Changes, Effective July 1, 2026

Intact Financial Corporation announced that it expects to receive CAD 250 million in funding

Bank Of Montreal and REX Shares Launch MicroSectors 3× Long And -3× Short High Yield And Investment Grade Corporate Bond ETNs

TD Bank Group Introduces New In-App Payroll Deposit Switching Experience

Second quarter dividend of CA$0.26 announced

Vice Chairman of the Board recently sold CA$71m worth of stock

IGM: Higher Street Views And Buybacks May Support Steady Future Returns

DFY: Synergy Delivery And Execution Will Support A Fair Value Range

BNS: Dividend Strength And AI Adoption Will Support Steady Fair Value

FFH: Softer Insurance Cycle Will Test Margins Yet Support Future Upside