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Canadian (TSX) Financials Sector Analysis

UpdatedMar 29, 2026
DataAggregated Company Financials
Companies209
  • 7D0.6%
  • 3M-6.3%
  • 1Y24.1%
  • YTD-6.3%

Last week, the Financials industry hasn't moved much but Brookfield is up 3.1% in that time. The past year has been better, since the industry has gained 24% in that time. Earnings are forecast to grow by 4.4% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 29 Mar 2026CA$1.6tCA$613.9bCA$109.4b13.3x14.6x2.6x
Tue, 24 Feb 2026CA$1.7tCA$604.2bCA$105.4b11.8x16.3x2.8x
Thu, 22 Jan 2026CA$1.7tCA$601.6bCA$104.0b14.4x16.2x2.8x
Sat, 20 Dec 2025CA$1.7tCA$601.2bCA$103.9b12.7x16.2x2.8x
Mon, 17 Nov 2025CA$1.6tCA$599.3bCA$102.4b12.6x15.6x2.7x
Wed, 15 Oct 2025CA$1.6tCA$601.3bCA$100.6b13.4x15.5x2.6x
Fri, 12 Sep 2025CA$1.5tCA$598.6bCA$100.5b13.6x15.3x2.6x
Sun, 10 Aug 2025CA$1.5tCA$589.5bCA$94.6b12.5x15.5x2.5x
Tue, 08 Jul 2025CA$1.5tCA$588.9bCA$91.9b12.4x15.8x2.5x
Thu, 05 Jun 2025CA$1.4tCA$589.0bCA$91.9b12.3x15.3x2.4x
Sat, 03 May 2025CA$1.3tCA$579.7bCA$81.8b12.7x16.4x2.3x
Mon, 31 Mar 2025CA$1.3tCA$584.3bCA$81.9b12.9x16.2x2.3x
Wed, 26 Feb 2025CA$1.4tCA$583.7bCA$80.7b13.1x17x2.4x
Fri, 24 Jan 2025CA$1.3tCA$590.2bCA$82.4b12.5x15.6x2.2x
Sun, 22 Dec 2024CA$1.3tCA$590.1bCA$82.4b12.7x15.3x2.1x
Tue, 19 Nov 2024CA$1.3tCA$588.2bCA$80.2b12.8x15.7x2.1x
Thu, 17 Oct 2024CA$1.2tCA$586.7bCA$78.1b12.6x15.7x2.1x
Sat, 14 Sep 2024CA$1.2tCA$584.5bCA$78.0b12.3x15x2x
Mon, 12 Aug 2024CA$1.1tCA$581.8bCA$80.1b11.7x13.3x1.8x
Wed, 10 Jul 2024CA$1.1tCA$574.6bCA$78.5b11.3x13.4x1.8x
Fri, 07 Jun 2024CA$1.1tCA$575.1bCA$78.5b11.3x13.5x1.8x
Sun, 05 May 2024CA$1.0tCA$574.0bCA$79.4b11.7x13.1x1.8x
Tue, 02 Apr 2024CA$1.1tCA$576.2bCA$79.9b11.1x13.3x1.8x
Thu, 29 Feb 2024CA$1.0tCA$594.4bCA$76.8b11.6x13.4x1.7x
Sat, 27 Jan 2024CA$1.0tCA$585.2bCA$80.9b10.7x12.6x1.7x
Mon, 25 Dec 2023CA$1.0tCA$582.7bCA$80.8b9.7x12.6x1.7x
Wed, 22 Nov 2023CA$954.1bCA$593.0bCA$88.2b9.7x10.8x1.6x
Fri, 20 Oct 2023CA$895.1bCA$588.9bCA$84.5b9.7x10.6x1.5x
Sun, 17 Sep 2023CA$972.5bCA$603.2bCA$84.5b10.2x11.5x1.6x
Tue, 15 Aug 2023CA$978.1bCA$599.4bCA$86.0b9.9x11.4x1.6x
Thu, 13 Jul 2023CA$956.8bCA$586.1bCA$82.1b10.5x11.7x1.6x
Sat, 10 Jun 2023CA$943.4bCA$582.8bCA$82.4b10.4x11.4x1.6x
Mon, 08 May 2023CA$951.1bCA$550.5bCA$86.5b10.8x11x1.7x
Wed, 05 Apr 2023CA$950.1bCA$553.0bCA$87.0b10.4x10.9x1.7x
Price to Earnings Ratio

10.9x


Total Market Cap: CA$950.1bTotal Earnings: CA$87.0bTotal Revenue: CA$553.0bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Financials Sector Price to Earnings3Y Average 14.1x202420252026
Current Industry PE
  • Investors are relatively neutral on the Canadian Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 14.1x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 7.9% per year over the last three years.
  • Revenues for these companies have grown 3.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

CA Market2.28%
Financials0.59%
Diversified Financial2.94%
Capital Markets2.02%
Consumer Finance0.82%
Banks0.41%
Mortgage Finance0%0
Insurance-0.087%
Industry PE
  • Investors are most optimistic about the Capital Markets industry, which is trading close to its 3-year average PE ratio of 35.6x.
    • Analysts are expecting annual earnings growth of 14.6%, which is higher than its past year's earnings growth of 3.0% per year.
  • Investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 10.4x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings growth rate of 3.5% per year.
  • In contrast, the Banks industry is expected to see its earnings grow by 3.0% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
BN BrookfieldCA$54.173.1%
+CA$3.6b		9.5%PE76.6x
RY Royal Bank of CanadaCA$219.850.6%
+CA$1.9b		36.9%PB2.4x
BAM Brookfield Asset ManagementCA$59.931.6%
+CA$1.5b		-13.7%PE27.9x
TD Toronto-Dominion BankCA$126.870.6%
+CA$1.3b		46.9%PB1.7x
NA National Bank of CanadaCA$177.491.4%
+CA$867.7m		48.9%PB2.2x

Latest News

POW
CA$66.19
Power Corporation of Canada
7D
2.0%
1Y
29.5%
IFC
CA$246.60
Intact Financial
7D
-1.4%
1Y
-13.8%

IFC: Underwriting Differentiation And Margin Durability Will Drive Future Outperformance

Narrative Update: Intact Financial Analyst Price Target Shift Analysts have nudged their price targets on Intact Financial higher by CA$2 to CA$8, citing expectations that insurers with more differentiated underwriting and resilient margins could be better positioned even as sector pricing stays weak and AI related headwinds persist. Analyst Commentary Recent research on insurers in the property and casualty group has focused on how underwriting quality and margin resilience could influence valuations, including for Intact Financial.
NA
CA$177.49
National Bank of Canada
7D
1.4%
1Y
48.9%

NA: Future Returns Will Reflect Buybacks And Discipline On Expenses And Mortgage Risk

Analysts have raised the average price target range on National Bank of Canada to roughly the CA$182 to CA$202 band, citing modestly better than expected Q1 results, updated earnings estimates through FY27, and sector-wide adjustments linked to easing mortgage renewal concerns. Analyst Commentary Recent research points to a tight CA$182 to CA$202 valuation band for National Bank of Canada, with multiple firms adjusting price targets following Q1 results, updated earnings frameworks through FY27, and sector wide revisions linked to mortgage renewal risk.
BMO
CA$183.03
Bank of Montreal
7D
-0.3%
1Y
34.1%

BMO: Future Returns Will Balance ROE Execution With Capital Markets Uncertainty

Analysts have trimmed the Bank of Montreal fair value estimate by about CA$1 to CA$204.14. This reflects a slightly higher discount rate and updated price targets in the CA$199 to CA$219 range that factor in recent earnings, return on equity initiatives and capital markets expectations.
RY
CA$219.85
Royal Bank of Canada
7D
0.6%
1Y
36.9%

RY: Future Returns Will Rely On Stable Credit And Measured AI Enabled Execution

Narrative Update The analyst price target for Royal Bank of Canada has edged higher by CA$0.07 to CA$245.07, as analysts factor in updated earnings assumptions, modest tweaks to P/E expectations, and recent Street research that has generally nudged targets upward within the CA$245 to CA$259 range. Analyst Commentary Recent research on Royal Bank of Canada points to a cluster of target prices in the mid C$240s to high C$250s, with ratings in the Outperform, Buy and Overweight range.
BAM
CA$59.93
Brookfield Asset Management
7D
1.6%
1Y
-13.7%
BNS
CA$94.09
Bank of Nova Scotia
7D
0.5%
1Y
37.6%
TD
CA$126.87
Toronto-Dominion Bank
7D
0.6%
1Y
46.9%

TD: Future Will Reflect Easing Mortgage Risks And Ongoing Share Repurchases

The analyst price target for Toronto-Dominion Bank has shifted slightly higher to CA$141.14 from CA$141.07, as analysts incorporate recent target increases across the Street, along with updated views on revenue trends, profitability, and future P/E assumptions. Analyst Commentary Recent Street research on Toronto-Dominion Bank points to a cluster of price target revisions that sit around the current consensus, with a mix of more optimistic and more cautious views on execution, valuation, and earnings durability.
DEFI
CA$0.68
DeFi Technologies
7D
-25.3%
1Y
-81.7%

DEFI: Nasdaq Compliance Outcome Will Drive Future Repricing Upside

Analysts now place their price target for DeFi Technologies at CA$5.40, essentially unchanged. This reflects updated assumptions around a slightly lower discount rate, moderated revenue growth and profit margin expectations, and a higher future P/E multiple.
CM
CA$128.90
Canadian Imperial Bank of Commerce
7D
-0.4%
1Y
60.3%

CM: Future Earnings Balance Will Hinge On Credit Costs And Capital Markets Performance

The analyst price target for Canadian Imperial Bank of Commerce has moved slightly to CA$143.75 from CA$143.97, reflecting a series of recent Street target increases that cite stronger than expected Q1 results, improving profitability metrics, and updated longer term earnings estimates across the Canadian bank group. Analyst Commentary Recent Street research on Canadian Imperial Bank of Commerce has been active, with several firms updating targets and views around the latest Q1 print and longer term earnings estimates.
DFY
CA$64.67
Definity Financial
7D
-2.6%
1Y
3.0%
BN
CA$54.17
Brookfield
7D
3.1%
1Y
9.5%
FFH
CA$2,308.98
Fairfax Financial Holdings
7D
-3.1%
1Y
13.4%

FFH: Index Inclusions And Buybacks Will Support Future Upside Potential

The updated analyst price target for Fairfax Financial Holdings has moved from approximately CA$3,193 to about CA$3,219, as analysts factor in revised assumptions around revenue growth, profit margins, and a lower future P/E multiple, while weighing mixed recent Street research that includes a C$100 price target increase at one firm and a downgrade at another. Analyst Commentary Recent Street research around Fairfax Financial Holdings has been mixed, with one bullish price target adjustment and at least one downgrade.
MFC
CA$46.74
Manulife Financial
7D
0.6%
1Y
6.1%

MFC: Execution On Medium Term Goals Will Support Further Multiple Expansion

Analysts have nudged the fair value estimate for Manulife Financial slightly higher to about CA$54.71, citing modestly higher revenue growth assumptions, a somewhat lower profit margin outlook, and a higher future P/E that aligns with a series of recent price target increases in the CA$52 to CA$58 range. Analyst Commentary Recent Street research on Manulife Financial has been active, with several firms adjusting price targets in a tight CA$52 to CA$58 range and one rating upgrade.
SFC
CA$9.15
Sagicor Financial
7D
-4.0%
1Y
15.2%
X
CA$47.80
TMX Group
7D
-1.6%
1Y
-9.0%