TSE:TD

Toronto-Dominion Bank (TD.TO)

170.90
+1.61 (0.95%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
2225 watching
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 61 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has seen a significant recovery from its recent challenges, notably the money laundering scandal, with many experts noting its potential for growth in the long term, especially within the Canadian economy. However, the consensus among analysts indicates that the stock is currently trading at historically high P/E ratios, raising concerns about its valuation and suggesting that it may be overvalued by approximately 5% or more compared to past norms. While some believe TD's impressive earnings growth and its strategic positioning in the U.S. market could still lead to positive outcomes, there are warnings about the high valuations and the possibility of a market correction. Analysts seem divided on whether to hold or to trim positions at this point, with a predominant view favoring a cautious approach. Overall, TD remains a strong brand within the Canadian banking sector, but its recent performance raises questions about future growth sustainability amid high valuations.

consensus icon
Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
COMMENT
Believes they do have exposure, through their US Bank North, to sub prime mortgages. This could be affecting them in the short-term.
COMMENT
Likes the banks in general, but this one wouldn't rank as high as some of the others. Have more problems in the US than some of the others. Prefers Bank of Nova Scotia (BNS-T), which has more growth potential because of its Caribbean and Latin American exposure.
PAST TOP PICK
(A Top Pick Dec 7/06. No change.) Worries about interest-rate cuts and bad debts held the stock back. He still likes and would buy.
TOP PICK
Excellent quarter. Well-managed. At current price, his target would give you 10%-11% plus the dividend for a total of 13%-14%. Good entry point.
COMMENT
Investors are looking at this one because of their expansion into the Northeast US through TD Bank North. Earning an extraordinarily high ROE at the present time. Its profile is more retail than a lot of the banks. He prefers other banks.
COMMENT
Earnings growth on Canadian banks looks good, but the valuations relative to US and global banks have crept up considerably. If he had to pick one bank, this would be the one because of their domestic business, which continues to be strong.
PAST TOP PICK
(A Top Pick Nov 15/06. Up 3.8%.) Would still be his favourite of Canadian banks. Still doesn't have their US Bank North firing on all cylinders but is starting to turn around.
COMMENT
At about the midpoint in the range of valuation for Canadian banks. Royal (RY-T) and Bank of Nova Scotia (BNS-T) are his favourites, followed by CIBC (CM-T). This Bank would be his 4th pick.
COMMENT
Long-term outlook for Canadian banks in general is excellent. This is one of the better run ones. Returns on their US Bank North have been low and they have changed management and will be able to build on it.
BUY
Model price is $73.73, a 9% positive differential.
BUY
His favourite. Out of favour having lagged the others with their troubles with US TD Bank North, which got squeezed on margins. Bank North is a small percentage of their assets and is an easier fix.
WEAK BUY
Everyone should have bank representation and this is a good one to own. Feels there’s better valuations in banks outside of Canada.
DON'T BUY
Financials have had a great run. This one is the weakest of the 5 banks. Having some problems with their credit and loan quality that the others are not having. Growth hasn’t been up to par.
BUY
Banks are a relatively good place to be. Earning extremely good return on equity. Capital investment market has been fairly strong. Not as interest sensitive as they used to be. Good dividend yields. Recently made an offer to Buy in the rest of their US asset, Bank North. Slowdown in the US could be a concern,
TOP PICK
Has been the under performer in banks because of concerns of their US holding, Bank North. This is turning around, making acquisitions, etc. Expect earnings will increase next year. 2.8% dividend could be increased.
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