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
0
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
PAST TOP PICK
(A Top Pick Mar 22/05. Up 14%.) The 2nd highest rated bank in his data base.
PAST TOP PICK
(A Top Pick Dec 30/04. Up 6.3%.) Still a favourite bank. The BankNorth is a transforming deal. Looks like they will sell TD Waterhouse and get a good price for it.
TOP PICK
A lot of the risk is out of their portfolio from the lending side. Retail side is doing very well. Would hope that they get rid of TD Waterhouse. Likes their Banknorth strategy for US exposure.
TOP PICK
Canadian banks have been good performers. 1st quarter results were up 22%. Gains are coming from better insurance products, real estate loans and good growth in their retail deposit operations.
TOP PICK
12.4 X this year's earnings. Likes the job they have done converting it into a more conservative retail bank. Also likes their US approach.
TOP PICK
3% dividend. Prefers Toronto Dominion (TD-T), National Bank (NA-T) or Bank of Montreal (BMO-T) over Royal Bank (RY-T) because there are wider differentials between the stock prices and his model prices.
TOP PICK
Very conservative management that is returning the base business to the trust company environment where it's more personal. If E*Trade doesn't go in with Ameritrade, Waterhouse has a good chance of being in there.
BUY
One of her 2 favourite banks. Likes their strategy in the US and Waterhouse.
BUY
Growth in the 10/15% area is quite achievable. Reasonable dividend. Expects the financials will be one of the best performing sectors.
TOP PICK
Has a couple of things going for it. Their new US subsiduary TD Banknorth (BNK-N) gives them good exposure. Ameritrade (AMTD-Q) and E*Trade (ET-N) merger is positive for TD Waterhouse US. Can see $55/56 one year out and with dividend you get a 13% upside.
BUY
Canadian banks keep on growing earnings 8/10/12% and you get paid 3% while you wait. Your total return is going to average around low teens. Financials are probably a little bit expensive as they have done so well. Have a good US acquisition.
DON'T BUY
Has TD Waterhouse which can't quite seem to make much inroad into the US as they want. In terms of retail banking in Canada, they are running 3rd. Their wealth management has never really taken off.
BUY
Canadian banks continue to offer good value on a medium time frame. If we were to see a rapid ratcheting up of interest rates, they would be vulnerable, but this is not expected. The banks offer reasonable value here.
TOP PICK
After they reported their earnings, his quant model showed it had the most differential between his model price and what the stock is trading at. 16% differential of most of all the banks.
PAST TOP PICK
(A Top Pick Dec 30/04. Down 1%.) Bank North acquisition will be a transforming one. 3% yield. Still likes.
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