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Canadian (TSX) Financials Sector Analysis

UpdatedFeb 09, 2026
DataAggregated Company Financials
Companies210
  • 7D2.0%
  • 3M6.6%
  • 1Y25.4%
  • YTD-0.9%

Royal Bank of Canada is up 2.6%, leading the way for the Financials industry, which has gained 2.0%. Meanwhile, Power Corporation of Canada actually underperformed within the industry, shrinking 6.1% in the last week. In the last 12 months, the industry was up 25%. 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
Mon, 09 Feb 2026CA$1.7tCA$599.9bCA$103.6b13.5x16.4x2.8x
Wed, 07 Jan 2026CA$1.7tCA$601.3bCA$103.9b13.6x16.7x2.9x
Fri, 05 Dec 2025CA$1.7tCA$601.4bCA$104.3b13x15.9x2.8x
Sun, 02 Nov 2025CA$1.6tCA$601.0bCA$100.7b12.9x15.8x2.7x
Tue, 30 Sep 2025CA$1.6tCA$599.7bCA$100.5b13.3x15.7x2.6x
Thu, 28 Aug 2025CA$1.5tCA$596.3bCA$96.8b13.7x15.8x2.6x
Sat, 26 Jul 2025CA$1.5tCA$589.4bCA$92.0b12.7x16.2x2.5x
Mon, 23 Jun 2025CA$1.4tCA$589.8bCA$92.0b12.4x15.3x2.4x
Wed, 21 May 2025CA$1.4tCA$580.3bCA$85.0b12.5x16.5x2.4x
Fri, 18 Apr 2025CA$1.3tCA$578.2bCA$81.5b12.1x15.7x2.2x
Sun, 16 Mar 2025CA$1.3tCA$583.3bCA$82.1b12.7x15.8x2.2x
Tue, 11 Feb 2025CA$1.4tCA$590.0bCA$82.6b12.6x16.7x2.3x
Thu, 09 Jan 2025CA$1.3tCA$590.2bCA$82.4b12.6x15.4x2.1x
Sat, 07 Dec 2024CA$1.3tCA$579.1bCA$82.8b13.1x15.6x2.2x
Mon, 04 Nov 2024CA$1.2tCA$590.6bCA$78.1b12.8x15.6x2.1x
Wed, 02 Oct 2024CA$1.2tCA$583.1bCA$78.0b11.7x15.4x2.1x
Fri, 30 Aug 2024CA$1.1tCA$582.1bCA$77.6b12x14.5x1.9x
Sun, 28 Jul 2024CA$1.1tCA$577.3bCA$78.7b11.8x14x1.9x
Tue, 25 Jun 2024CA$1.0tCA$575.0bCA$78.5b11.1x13.1x1.8x
Thu, 23 May 2024CA$1.1tCA$571.6bCA$78.3b11.1x13.7x1.9x
Sat, 20 Apr 2024CA$1.0tCA$579.0bCA$80.1b11.2x12.7x1.8x
Mon, 18 Mar 2024CA$1.0tCA$596.9bCA$79.8b11.5x13.1x1.8x
Wed, 14 Feb 2024CA$995.5bCA$592.6bCA$81.7b9.8x12.2x1.7x
Fri, 12 Jan 2024CA$1.0tCA$584.6bCA$80.9b9.8x12.5x1.7x
Sun, 10 Dec 2023CA$966.8bCA$587.1bCA$80.9b9.6x12x1.6x
Tue, 07 Nov 2023CA$920.0bCA$584.8bCA$86.3b9.9x10.7x1.6x
Thu, 05 Oct 2023CA$907.3bCA$589.3bCA$84.6b9.5x10.7x1.5x
Sat, 02 Sep 2023CA$960.4bCA$604.2bCA$84.5b10.4x11.4x1.6x
Mon, 31 Jul 2023CA$993.6bCA$586.8bCA$82.2b10.6x12.1x1.7x
Wed, 28 Jun 2023CA$868.1bCA$557.2bCA$74.0b10.4x11.7x1.6x
Fri, 26 May 2023CA$939.3bCA$585.7bCA$87.7b10.4x10.7x1.6x
Sun, 23 Apr 2023CA$978.6bCA$554.0bCA$87.0b10.6x11.3x1.8x
Tue, 21 Mar 2023CA$915.7bCA$553.4bCA$86.2b10.1x10.6x1.7x
Thu, 16 Feb 2023CA$1.0tCA$559.1bCA$93.1b11.1x10.9x1.8x
Price to Earnings Ratio

10.9x


Total Market Cap: CA$1.0tTotal Earnings: CA$93.1bTotal Revenue: CA$559.1bTotal 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 16.4x 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 2.8x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 3.6% per year over the last three years.
  • Revenues for these companies have grown 2.4% 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%
Financials1.99%
Consumer Finance4.66%
Banks3.49%
Diversified Financial0.93%
Insurance0.57%
Mortgage Finance0%0
Capital Markets-0.98%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry even though it's trading below its 3-year average PE ratio of 97.7x.
    • Analysts are expecting annual earnings growth of 36.0%, which is higher than its past year's earnings decline of 9.2% per year.
  • Investors are most pessimistic about the Consumer Finance industry, which is trading close to its 3-year average of 10.5x.
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
TD Toronto-Dominion BankCA$131.993.7%
+CA$7.9b		59.4%PB1.8x
CM Canadian Imperial Bank of CommerceCA$132.105.0%
+CA$5.8b		48.4%PB2x
RY Royal Bank of CanadaCA$232.721.0%
+CA$3.1b		37.8%PB2.6x
BMO Bank of MontrealCA$193.482.2%
+CA$2.9b		36.1%PB1.6x
NA National Bank of CanadaCA$169.073.1%
+CA$1.9b		35.0%PB2x

Latest News

ONEX
CA$106.66
Onex
7D
-8.6%
1Y
-2.8%
X
CA$45.42
TMX Group
7D
-11.7%
1Y
-8.5%
TD
CA$131.99
Toronto-Dominion Bank
7D
3.7%
1Y
59.4%
FIH.U
US$17.35
Fairfax India Holdings
7D
-2.5%
1Y
-12.2%

Earnings Not Telling The Story For Fairfax India Holdings Corporation (TSE:FIH.U)

Feb 05
Earnings Not Telling The Story For Fairfax India Holdings Corporation (TSE:FIH.U)
CM
CA$132.10
Canadian Imperial Bank of Commerce
7D
5.0%
1Y
48.4%

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.
FFH
CA$2,337.10
Fairfax Financial Holdings
7D
2.9%
1Y
16.9%

FFH: Global Index Additions And Updated P/E Framework Will Support Upside

Analysts have nudged their price target framework for Fairfax Financial higher to about C$3,162 per share from roughly C$3,141, reflecting recent target revisions across the Street and updated assumptions around revenue growth, profit margins and future P/E levels. Analyst Commentary Recent Street research on Fairfax Financial shows a mix of higher and lower price targets, along with at least one downgrade, which gives you a range of views on how the company is executing and how the shares are valued.
NA
CA$169.07
National Bank of Canada
7D
3.1%
1Y
35.0%
MFC
CA$51.97
Manulife Financial
7D
-0.9%
1Y
21.6%

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$232.72
Royal Bank of Canada
7D
1.0%
1Y
37.8%
IFC
CA$260.82
Intact Financial
7D
2.9%
1Y
-5.5%

IFC: Q3 Earnings Beat And Buybacks Will Support Undervalued Upside

Analysts have nudged their view higher on Intact Financial, with the consensus price target moving up by C$6 to C$318. They cited the recent Q3 earnings beat as support for slightly stronger revenue growth, revised profit margin assumptions, and a marginally lower discount rate and forward P/E in their models.
GWO
CA$61.53
Great-West Lifeco
7D
-3.5%
1Y
19.0%

GWO: Capital Strength And Buybacks Will Support Balanced Medium Term Earnings Outlook

Narrative Update: Great-West Lifeco Our updated analyst price target for Great-West Lifeco moves higher to C$66.17 from C$64.50, reflecting analysts' higher Street targets and their focus on capital strength, cash flow and consolidation potential, alongside modest adjustments to our fair value inputs such as profit margin and future P/E assumptions. Analyst Commentary Recent Street research has trended toward higher price targets for Great-West Lifeco, with several firms revising their views and focusing on capital strength, cash flow generation and the potential role the company could play in sector consolidation.
BMO
CA$193.48
Bank of Montreal
7D
2.2%
1Y
36.1%

BMO: Future Returns Will Balance U.S. Credit Recovery With Capital Returns

Narrative update The analyst price target for Bank of Montreal has edged up by about C$0.27 to reflect a slightly higher fair value and a modestly lower discount rate. Analysts are weighing recent target increases from Scotiabank and Canaccord against more cautious Sector Perform and Market Perform views, with price targets around C$181 to C$191.
BNS
CA$104.30
Bank of Nova Scotia
7D
1.5%
1Y
44.0%

BNS: New Leadership And ROE Focus May Support Gradual Multiple Improvement

Narrative Update: Bank of Nova Scotia The analyst price targets for Bank of Nova Scotia have moved higher into the C$98 to C$108 range, as analysts point to encouraging developments under new management. They also see room for the P/E multiple to improve if ROE strengthens from current levels.
BN
CA$61.71
Brookfield
7D
-0.6%
1Y
9.0%
POW
CA$64.50
Power Corporation of Canada
7D
-6.8%
1Y
37.3%
PVF.UN
CA$16.89
Partners Value Investments
7D
-6.7%
1Y
12.6%