The Toronto-Dominion Bank

TSX:TD.PFI Stock Report

Market Cap: CA$137.5b

Toronto-Dominion Bank Valuation

Is TD.PFI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TD.PFI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TD.PFI (CA$25.87) is trading below our estimate of fair value (CA$53.64)

Significantly Below Fair Value: TD.PFI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TD.PFI?

Key metric: As TD.PFI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TD.PFI. This is calculated by dividing TD.PFI's market cap by their current earnings.
What is TD.PFI's PE Ratio?
PE Ratio18x
EarningsCA$7.69b
Market CapCA$137.45b

Price to Earnings Ratio vs Peers

How does TD.PFI's PE Ratio compare to its peers?

The above table shows the PE ratio for TD.PFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
BMO Bank of Montreal
15.4x11.8%CA$96.9b
BNS Bank of Nova Scotia
14x8.8%CA$97.9b
CM Canadian Imperial Bank of Commerce
13.3x7.3%CA$86.0b
RY Royal Bank of Canada
15.6x2.1%CA$247.0b
TD.PFI Toronto-Dominion Bank
18x17.2%CA$137.5b

Price-To-Earnings vs Peers: TD.PFI is expensive based on its Price-To-Earnings Ratio (18x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does TD.PFI's PE Ratio compare vs other companies in the North American Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TD.PFI 18.0xIndustry Avg. 13.4xNo. of Companies97PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TD.PFI is expensive based on its Price-To-Earnings Ratio (18x) compared to the North American Banks industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is TD.PFI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TD.PFI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: TD.PFI is expensive based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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