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Canadian (TSX) Financials Sector Analysis

UpdatedFeb 11, 2026
DataAggregated Company Financials
Companies211
  • 7D2.7%
  • 3M6.6%
  • 1Y28.4%
  • YTD0.8%

In the last week, the Financials industry is up 2.7%, with Brookfield Asset Management up 11%. In the last 12 months, the industry was up 28%. Looking forward, earnings are forecast to grow by 5.3% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 11 Feb 2026CA$1.7tCA$598.9bCA$103.4b13.2x16.5x2.9x
Fri, 09 Jan 2026CA$1.7tCA$602.0bCA$104.0b13x16.5x2.9x
Sun, 07 Dec 2025CA$1.7tCA$601.5bCA$104.0b13.6x16x2.8x
Tue, 04 Nov 2025CA$1.6tCA$601.4bCA$100.7b12.2x15.8x2.7x
Thu, 02 Oct 2025CA$1.5tCA$547.3bCA$94.2b13.6x16.2x2.8x
Sat, 30 Aug 2025CA$1.5tCA$597.4bCA$100.4b13.6x15.2x2.5x
Mon, 28 Jul 2025CA$1.5tCA$589.4bCA$92.0b12.7x16.2x2.5x
Wed, 25 Jun 2025CA$1.4tCA$589.7bCA$92.0b12.3x15.6x2.4x
Fri, 23 May 2025CA$1.4tCA$579.6bCA$84.9b12.5x16.4x2.4x
Sun, 20 Apr 2025CA$1.3tCA$578.2bCA$81.5b12.1x15.7x2.2x
Tue, 18 Mar 2025CA$1.3tCA$582.3bCA$82.0b12.9x15.8x2.2x
Thu, 13 Feb 2025CA$1.4tCA$588.7bCA$82.9b12.9x16.6x2.3x
Sat, 11 Jan 2025CA$1.3tCA$590.8bCA$82.4b12.4x15.4x2.2x
Mon, 09 Dec 2024CA$1.3tCA$579.1bCA$82.8b13.1x15.7x2.2x
Wed, 06 Nov 2024CA$1.2tCA$587.9bCA$78.5b12.9x15.5x2.1x
Fri, 04 Oct 2024CA$1.2tCA$584.0bCA$78.0b11.8x15.4x2.1x
Sun, 01 Sep 2024CA$1.1tCA$582.9bCA$77.9b12x14.7x2x
Tue, 30 Jul 2024CA$1.1tCA$577.6bCA$78.7b11.8x14x1.9x
Thu, 27 Jun 2024CA$1.0tCA$575.5bCA$78.6b11.2x13.2x1.8x
Sat, 25 May 2024CA$1.1tCA$572.2bCA$77.5b11.4x13.8x1.9x
Mon, 22 Apr 2024CA$1.0tCA$578.7bCA$80.0b11.1x12.8x1.8x
Wed, 20 Mar 2024CA$1.0tCA$597.2bCA$79.8b11.6x13.2x1.8x
Fri, 16 Feb 2024CA$1.0tCA$587.8bCA$82.3b10.4x12.3x1.7x
Sun, 14 Jan 2024CA$1.0tCA$584.7bCA$80.9b9.8x12.4x1.7x
Tue, 12 Dec 2023CA$973.6bCA$586.9bCA$80.9b9.6x12x1.7x
Thu, 09 Nov 2023CA$912.0bCA$589.9bCA$85.6b10x10.7x1.5x
Sat, 07 Oct 2023CA$908.0bCA$588.2bCA$84.5b9.6x10.7x1.5x
Mon, 04 Sep 2023CA$960.4bCA$604.2bCA$84.5b10.3x11.4x1.6x
Wed, 02 Aug 2023CA$990.3bCA$587.5bCA$82.2b10.6x12x1.7x
Fri, 30 Jun 2023CA$953.0bCA$586.9bCA$82.1b10.5x11.6x1.6x
Sun, 28 May 2023CA$945.0bCA$586.2bCA$82.6b10.4x11.4x1.6x
Tue, 25 Apr 2023CA$973.4bCA$554.0bCA$87.0b10.6x11.2x1.8x
Thu, 23 Mar 2023CA$918.9bCA$553.9bCA$86.3b10.2x10.7x1.7x
Sat, 18 Feb 2023CA$1.0tCA$554.8bCA$94.5b10.6x10.8x1.8x
Price to Earnings Ratio

10.8x


Total Market Cap: CA$1.0tTotal Earnings: CA$94.5bTotal Revenue: CA$554.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Financials Sector Price to Earnings3Y Average 13.9x202420252026
Current Industry PE
  • 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 16.5x which is higher than its 3-year average PE of 13.9x.
  • The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 3.0% per year over the last three years.
  • Revenues for these companies have grown 2.6% 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 Market2.10%
Financials2.68%
Capital Markets6.13%
Banks2.63%
Consumer Finance2.01%
Mortgage Finance0%0
Insurance-0.07%
Diversified Financial-0.18%
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 34.9x.
    • Analysts are expecting annual earnings growth of 15.5%, which is higher than its past year's earnings growth of 1.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 36% over the next 5 years.
  • This is better than its past earnings decline of 9.2% per year.
  • In contrast, the Banks industry is expected to see its earnings grow by 3.8% 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
BAM Brookfield Asset ManagementCA$71.7211.1%
+CA$11.6b		-9.8%PE34.3x
BN BrookfieldCA$64.716.4%
+CA$8.7b		15.8%PE128.9x
RY Royal Bank of CanadaCA$237.822.2%
+CA$7.1b		40.7%PB2.6x
TD Toronto-Dominion BankCA$133.642.6%
+CA$5.8b		54.2%PB1.8x
BNS Bank of Nova ScotiaCA$105.462.6%
+CA$3.3b		44.8%PB1.5x

Latest News

WED
CA$24.00
Westaim
7D
-5.0%
1Y
-27.7%
X
CA$46.14
TMX Group
7D
-1.8%
1Y
-6.4%
NA
CA$172.26
National Bank of Canada
7D
4.7%
1Y
37.3%

NA: Dividend Strength And Expansion Execution Will Shape Future Share Returns

Analysts have inched up their fair value estimate for National Bank of Canada to about C$170.71 from C$170.57, in line with recent Street price target increases to C$188, C$168 and C$160, which are based on updated views of discount rates, revenue growth, profit margins and future P/E assumptions. Analyst Commentary Street research on National Bank of Canada has centered on how much upside is left in the shares after recent target revisions and how execution risk could affect returns on equity as the bank broadens beyond its core Quebec base.
BNS
CA$105.46
Bank of Nova Scotia
7D
2.6%
1Y
44.8%

BNS: New Leadership And ROE Focus May Support Measured Re rating Potential

Analysts have nudged their fair value estimate for Bank of Nova Scotia slightly higher to about $101.33 from $101.20, reflecting a modestly higher assumed discount rate and future P/E multiple, supported by recent price target increases and fresh Outperform and Buy ratings from several firms. Analyst Commentary Bullish Takeaways Bullish analysts have moved their price targets into a C$98 to C$108 range, which sits above the current fair value estimate and signals confidence that the market could re-rate the shares if execution stays on track.
GWO
CA$60.23
Great-West Lifeco
7D
-4.6%
1Y
17.8%

GWO: Capital Strength And Buybacks Will Support Higher Medium Term Earnings Multiple

Analysts have inched their fair value estimate for Great-West Lifeco higher to about C$67 from roughly C$66. This reflects recent price target increases at several firms and updated assumptions around discount rates, margins, and future P/E multiples.
BMO
CA$197.49
Bank of Montreal
7D
2.3%
1Y
38.8%

BMO: Future Returns Will Reflect Narrowing ROE Gap And Capital Returns

Analysts have nudged their fair value estimate for Bank of Montreal higher to about $186.67 from $183.93, reflecting updated price targets that are based on views of a gradually narrowing return on equity gap and steady expectations for revenue growth, profit margins and future P/E. Analyst Commentary Recent research coverage on Bank of Montreal reflects a mix of optimism and caution, with price targets clustering in a relatively tight range and ratings spread between Buy and various forms of Perform.
TD
CA$133.64
Toronto-Dominion Bank
7D
2.6%
1Y
54.2%

TD: Future Will Balance U.S. Asset Cap Fallout And Buybacks

Narrative update The analyst fair value estimate for Toronto Dominion Bank has edged up from C$128.67 to C$129.07. This reflects a cluster of higher Street price targets in the C$119 to C$132 range, as analysts point to steady progress under new leadership and updated views on the bank's risk profile and valuation metrics.
SLF
CA$87.44
Sun Life Financial
7D
-0.5%
1Y
4.7%

SLF: Capital Strength And Dry Powder Will Balance 2026 Margin Headwinds

Narrative Update The analyst price target for Sun Life Financial has edged higher to roughly C$92.79 from about C$92.43, as analysts adjust their fair value assumptions and P/E expectations following recent mixed target moves from Scotiabank, CIBC, and Barclays. These moves reflect differing views on capital strength, cash flow, and sector headwinds.
BAM
CA$71.72
Brookfield Asset Management
7D
11.1%
1Y
-9.8%
CM
CA$132.95
Canadian Imperial Bank of Commerce
7D
2.7%
1Y
51.5%

CM: Net Interest Margins And Credit Costs Will Shape Future Earnings Balance

Narrative update The analyst price target for Canadian Imperial Bank of Commerce has been raised, with recent Street research moving targets to C$117, C$123, C$127 and most recently C$138, as analysts point to factors such as net interest margin trends and provisions for credit losses as key drivers in their updated views. Analyst Commentary Recent research shows a series of higher price targets for Canadian Imperial Bank of Commerce, along with mixed views on how sustainable current drivers of earnings might be.
MFC
CA$51.85
Manulife Financial
7D
-0.1%
1Y
22.5%

MFC: Core Insurance Execution And Asia Focus Will Support Measured Multiple Expansion

Our analyst fair value estimate for Manulife Financial has edged up by about $0.20 per share as analysts reflect a series of higher price targets, supported by views on execution against medium term objectives, potential upside to consensus estimates, and room for further multiple expansion within the life insurance group. Analyst Commentary Recent Street research on Manulife Financial has leaned constructive, with several firms lifting price targets and, in at least one case, upgrading the stock rating.
RY
CA$237.82
Royal Bank of Canada
7D
2.2%
1Y
40.7%
SII
CA$165.74
Sprott
7D
-1.7%
1Y
166.2%
BN
CA$64.71
Brookfield
7D
6.4%
1Y
15.8%
POW
CA$65.03
Power Corporation of Canada
7D
-4.4%
1Y
40.0%
PVF.UN
CA$16.30
Partners Value Investments
7D
-9.9%
1Y
8.7%