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.

consensus icon
Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
TOP PICK
In the environment of rising interest rates, the banks are probably well suited to weather the storm. Likes their US BankNorth holding. 12.5 X this year's earnings.Good yield. Also likes Bank of Nova Scotia and Bank of montreal.
BUY
Likes this better than any of the other banks at this tiem. Likes what they are doing on the retail side. Well managed. More of a discount than what it has been.
BUY
Likes the banks in general. Favourites are this and Bank of Montreal (BMO-T) as they are the cheapest.
BUY
Management has done a good job in reducing the risk profile in the last several years. Their new acquisition, Banknorth Group will give them a US growth platform. Valuation is still reasonable at 12 1/2 X earnings. 3% yield.
BUY
There's always a risk with making US acquisitions, so will wacth this one. Generally he's a fan of the CEO and what he's done at the bank. Taken a lot of the risk out of the bank, educing the loan portfolio, moved more into a retail environment and stabilized the earnings.
TOP PICK
Enthusiastic about the changes put into play over the last couple of years in terms of risk management on the corporate side and also developing the retail side. Feels their entry into the US is a very prudent way of entry. 12 X earnings. 3% or so of dividends. Has decengt growth.
TOP PICK
Valuation looks attractive. Trading at an average multiple and over time it should get back to a premium multiple. Likes the acquisition in the US although it comes with some risk.
PAST TOP PICK
(A Top Pick Nov 18/04. Down slightly.) Likes their US Banknorth acquisition which is going to give them a good foray into the US market.
BUY
You could buy BankNorth shares, but owning TD is a better way to go. Not sure that TD's shares will bump up on this acquisition, more likely after BankNorth completes its acquisitions.
BUY ON WEAKNESS
Management team is the best in the business. They have a defined strategy of growth for the US. Short term will be difficult as valuations of financials in the US are at a premium so it will be hard to do accretive acquisitions. Longer term there will be some attractive assets come up. Can grow around 10%. Wait for a pull back.
TOP PICK
Not expensive and pays a good dividend. Has a great wealth management business. 2nd best Canadian retail franchise. Going into the US through Bank North is very risk averse and makes a lot of sense in the long term.
TOP PICK
Biggest challenge for banks is how to grow revenue. TD has gone outside of Canada and bought a 51% stake in Bank North. This has created a platform in the US to continue to grow and increase revenues. Of all the 5 banks, TD and Bank of Nova Scotia have the most amount of cash on their balance sheets.
HOLD
Doing well in their retail banking. Good management.
BUY
If your outlook is long term, Canadian banks are reasonable and could be bought now. For playing the market, wait for a drop by $1/2.
BUY
Favourite in the banks, but prefers insurance companies at this time. This is the cheapest bank based on projected earnings. The 2nd cheapest is the Bank of Montreal.
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