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.

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Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
BUY
Has a strong retail franchise. Earnings on equity about 20%. They were correct in selling their Waterhouse asset in the US. Feels that Bank North problems will work itself out.
BUY
One of his favourite banks. Excellent for the brand name franchise. Likes their diversification into the US. Should do quite well.
TOP PICK
Likes it for its US strategy through Bank North. Has under performed its peers and is trading at a discount and has a better earnings outlook than the other banks.
WEAK BUY
His choice would be the Canadian Bank of Commerce (CM-T) in that, if there were any positive surprises to come, it is likely to come from the trading/revenue side which CIBC is more exposed to.
TOP PICK
Under $57, it's a great long-term value. An extremely profitable retail bank. Fairly low risk.
DON'T BUY
Canadian banks US assets are not doing well and this includes TD’s Bank North acquisition. Expecting more write-offs because of this. (US banks are trading at lower multiples than Canadian banks because the Canadian banks are much more profitable and more stable.)
BUY
Likes the way they have restructured the assets. Has been under a little bit of pressure recently because of a bit of a miss on the last quarter. Good price.
BUY
Likes their international moves. Prefers bank of Nova Scotia (BNS-T) due to their Latin American assets. At worst, the banks will be grindingly boring through the rest of the year. Worth holding.
PAST TOP PICK
(A Top Pick May 30/05. Up 9.2%.) Likes the banking sector. This is his favourite. At a good price.
BUY
Really likes their strategy in respect to its US operations. The TD Waterhouse with its merger is very well positioned. Online trading is going to be a growing factor.
HOLD
Canadian banks are expensive compared to their global peers. Likes the way this bank has operated. Likes the makeup of their business.
BUY
A little more leveraged to the trading game so they are a proxy for the equity markets. Short-term, the banks are overvalued, interest rates have hurt them and the yield curve has flattened but overall Canadian banks are still a fundamental buy.
BUY
Likes their retail strategy very much. Less vulnerable to recession. Good valuation.
DON'T BUY
A little bit worried about their US discount brokerage business. When the market falls like it did in the spring in the US, people trade less. There are a lot of problems in the US economy which makes their US assets worth less.
HOLD
Rate of return will be high single digit/low double digit, if bought and held for 5 years. This includes dividend and the rest from capital gains. Good price.
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