Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Canadian (TSX) Banks Industry Analysis

UpdatedJan 30, 2026
DataAggregated Company Financials
Companies9
  • 7D-1.1%
  • 3M10.4%
  • 1Y35.4%
  • YTD-0.7%

Over the last 7 days, the Banks industry has dropped 1.1%, driven by a pullback from Royal Bank of Canada of 2.3%. In the past year, the industry has gained 35%. Looking forward, earnings are forecast to grow by 3.9% annually.

Industry Valuation and Performance

Has the Canadian Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 30 Jan 2026CA$976.2bCA$231.5bCA$67.7b16x14.4x4.2x
Sun, 28 Dec 2025CA$990.3bCA$231.5bCA$67.7b15.4x14.6x4.3x
Tue, 25 Nov 2025CA$912.3bCA$227.2bCA$66.1b14.8x13.8x4x
Thu, 23 Oct 2025CA$890.1bCA$227.2bCA$66.1b15.2x13.5x3.9x
Sat, 20 Sep 2025CA$875.0bCA$227.2bCA$66.1b15.3x13.2x3.9x
Mon, 18 Aug 2025CA$813.1bCA$219.5bCA$60.4b14.4x13.5x3.7x
Wed, 16 Jul 2025CA$788.5bCA$219.5bCA$60.4b14.2x13.1x3.6x
Fri, 13 Jun 2025CA$754.6bCA$219.5bCA$60.4b13.6x12.5x3.4x
Sun, 11 May 2025CA$716.5bCA$207.7bCA$51.1b13.3x14x3.5x
Tue, 08 Apr 2025CA$665.5bCA$207.7bCA$51.1b11.9x13x3.2x
Thu, 06 Mar 2025CA$701.2bCA$207.7bCA$51.1b13.4x13.7x3.4x
Sat, 01 Feb 2025CA$739.4bCA$203.6bCA$49.6b15.2x14.9x3.6x
Mon, 30 Dec 2024CA$720.7bCA$203.6bCA$49.6b13.1x14.5x3.5x
Wed, 27 Nov 2024CA$722.2bCA$206.4bCA$47.7b13.9x15.2x3.5x
Fri, 25 Oct 2024CA$704.4bCA$206.4bCA$47.7b12.8x14.8x3.4x
Sun, 22 Sep 2024CA$699.8bCA$206.4bCA$47.7b12.9x14.7x3.4x
Tue, 20 Aug 2024CA$640.7bCA$202.7bCA$49.6b12.1x12.9x3.2x
Thu, 18 Jul 2024CA$633.6bCA$202.7bCA$49.6b11.5x12.8x3.1x
Sat, 15 Jun 2024CA$605.7bCA$202.7bCA$49.6b10.9x12.2x3x
Mon, 13 May 2024CA$620.0bCA$199.0bCA$49.4b10.7x12.6x3.1x
Wed, 10 Apr 2024CA$629.6bCA$199.0bCA$49.4b10.9x12.8x3.2x
Fri, 08 Mar 2024CA$614.8bCA$199.0bCA$49.4b10.7x12.5x3.1x
Sun, 04 Feb 2024CA$596.1bCA$195.5bCA$44.8b10.9x13.3x3x
Tue, 02 Jan 2024CA$616.7bCA$195.5bCA$44.8b11x13.8x3.2x
Thu, 30 Nov 2023CA$546.8bCA$168.7bCA$50.9b10x10.7x3.2x
Sat, 28 Oct 2023CA$513.2bCA$197.4bCA$51.6b8.9x9.9x2.6x
Mon, 25 Sep 2023CA$563.9bCA$197.4bCA$51.6b9.9x10.9x2.9x
Wed, 23 Aug 2023CA$562.0bCA$192.8bCA$52.2b9.8x10.8x2.9x
Fri, 21 Jul 2023CA$603.6bCA$192.7bCA$52.1b10.5x11.6x3.1x
Sun, 18 Jun 2023CA$580.2bCA$192.7bCA$52.1b10.1x11.1x3x
Tue, 16 May 2023CA$591.5bCA$192.7bCA$57.6b9.1x10.3x3.1x
Thu, 13 Apr 2023CA$588.3bCA$192.7bCA$57.6b9.6x10.2x3.1x
Sat, 11 Mar 2023CA$593.0bCA$191.9bCA$57.3b10.2x10.3x3.1x
Mon, 06 Feb 2023CA$635.5bCA$191.8bCA$65.6b9.3x9.7x3.3x
Price to Earnings Ratio

9.7x


Total Market Cap: CA$635.5bTotal Earnings: CA$65.6bTotal Revenue: CA$191.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 12.7x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 14.4x which is higher than its 3-year average PE of 12.7x.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.5% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

CA Market-0.049%
Financials-1.53%
Banks-1.14%
Regional Banks-0.60%
Diversified Banks-1.14%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 10.1x.
    • Analysts are expecting annual earnings growth of 34.3%, which is higher than its past year's earnings decline of 30.4% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.8x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 34% over the next 5 years.
  • This is better than its past earnings decline of 30% per year.
  • In contrast, the Diversified 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
CM Canadian Imperial Bank of CommerceCA$128.230.6%
+CA$731.1m		38.8%PB1.9x
BNS Bank of Nova ScotiaCA$103.040.5%
+CA$692.2m		37.3%PB1.5x
LB Laurentian Bank of CanadaCA$40.010.3%
+CA$4.5m		40.8%PB0.6x
EQB EQBCA$108.360.1%
+CA$4.5m		-1.3%PB1.3x

Latest News

RY
CA$227.52
Royal Bank of Canada
7D
-2.3%
1Y
27.3%

RY: Future Returns Will Rely On Leading ROE And Diversified Capital Actions

Narrative Update The analyst price target for Royal Bank of Canada has shifted higher, with recent Street research moving targets to a range of about C$224 to C$242. Analysts highlight the bank's leading ROE, large scale, diversified business mix, and relatively lower lending exposure as key supports for the updated valuations.
LB
CA$40.01
Laurentian Bank of Canada
7D
0.3%
1Y
40.8%

LB: Pending Takeover And Stable Assumptions Will Guide Future Share Outcome

Narrative Update on Laurentian Bank of Canada Analysts have left their price target for Laurentian Bank of Canada essentially unchanged at about $40.38 per share, reflecting only marginal tweaks to assumptions such as discount rate, long run revenue growth, profit margin, and future P/E, rather than any major shift in the underlying outlook. Analyst Commentary Recent research focus has been on another company, not on Laurentian Bank of Canada, so current Street commentary for Laurentian is limited.
EQB
CA$108.36
EQB
7D
0.1%
1Y
-1.3%

EQB: Future Returns Will Depend On Execution And Ongoing Share Repurchases

Analysts have lifted their fair value estimate for EQB to about $107.22 from $104.78, citing updated assumptions for the discount rate, profit margin, revenue trajectory and a slightly higher future P/E multiple that align with recent price target increases from the Street. Analyst Commentary Recent Street research on EQB signals that analysts are refining their views around valuation and execution, with fresh price targets and upgraded views reflecting updated assumptions on discount rates, margins and revenue mix.
NA
CA$163.68
National Bank of Canada
7D
-1.4%
1Y
24.7%

NA: Dividend Strength And Execution On ROE Rebuild Will Shape Future Returns

Analysts have made a small upward adjustment to our National Bank of Canada fair value estimate, lifting the target by about C$0.29 per share to reflect slightly lower discount rate assumptions and modestly higher long term P/E expectations, which align with recent Street target increases into the C$160 to C$188 range. Analyst Commentary Recent Street views on National Bank of Canada cluster in a relatively tight price target range from C$160 to C$188, with a mix of Buy, Hold, Market Perform and Outperform ratings.
BMO
CA$190.90
Bank of Montreal
7D
-0.1%
1Y
32.4%

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.
TD
CA$127.99
Toronto-Dominion Bank
7D
-2.0%
1Y
54.1%

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

Analysts have nudged their average price target for Toronto Dominion Bank higher into the low C$120s, citing recent target increases from C$115 to C$122 at UBS, C$119 to C$122 at Canaccord, C$125 to C$132 at Scotiabank, and a new C$119 initiation. Together these changes reflect updated views on the bank's progress under new leadership and the current valuation after a 50% year to date share price move.
BNS
CA$103.04
Bank of Nova Scotia
7D
0.5%
1Y
37.3%

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.
CM
CA$128.23
Canadian Imperial Bank of Commerce
7D
0.6%
1Y
38.8%

CM: Net Interest Margins And Credit Costs Will Drive Balanced Earnings Profile

Analysts have inched up their price targets on Canadian Imperial Bank of Commerce, lifting our fair value estimate from C$125.07 to C$125.38. They point to improved outlooks reflected in higher Street targets ranging from C$117 to C$138 and steady assumptions for growth, margins and future P/E.
VBNK
CA$21.28
VersaBank
7D
-4.6%
1Y
8.8%