# The Toronto-Dominion Bank (TSX:TD)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/TSX/TD

Price C$172.92 (CAD), market cap C$282.4B, Financials - Banks - Diversified.

## Valuation

- SE Reference Value (expected value, DCF): C$158.23 (central 50% range C$145.33 to C$176.59), -8% against the price; range width narrow
- SE Grade: 1 of 3 (Value 0, Quality 2, Moat 3)
- Consensus Rating: Buy (Strong buy 3, Buy 5, Hold 3, Sell 2, Strong sell 0)
- Consensus Price (mean): C$183.53, +6% against the price

## Key metrics

Financials in CAD. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | C$64.76B | CAGR 9.2% | CAGR 7.9% | P60 |
| Revenue growth | -4.9% | 9.9% | 7.2% | P0 |
| NIM | 1.9% | 1.7% | 1.8% | P77 |
| Efficiency ratio | 62.2% | 58.6% | 57.8% | P0 |
| Net margin | 24.1% | 29.5% | 28.0% | P13 |
| Net interest income | C$35.49B | CAGR 6.2% | CAGR 5.8% | - |
| Net interest income growth (FY2025) | 8.5% | 8.5% | 6.7% | P53 |
| ROTE | 15.4% | 18.1% | 18.2% | P70 |
| ROE | 12.7% | 15.1% | 14.7% | P60 |
| ROA | 0.7% | 0.8% | 0.8% | P63 |
| EPS | C$9.44 | CAGR 12.4% | CAGR 10.6% | - |
| EPS growth | -20.1% | 20.1% | 9.2% | P0 |
| Book value per share | C$75.18 | CAGR 7.8% | CAGR 7.8% | - |
| Tangible book value per share | C$61.37 | CAGR 8.8% | CAGR 9.5% | - |
| Dividend per share | C$4.33 | CAGR 6.2% | CAGR 7.7% | - |
| Dividend yield | 2.5% | 4.5% | 3.9% | P33 |
| Payout ratio | 46.4% | 40.9% | 44.8% | P63 |
| Diluted shares | 1,633.0M | CAGR -0.9% | CAGR -0.8% | P73 |
| Buyback yield | 3.9% | 0.4% | 0.7% | P73 |
| Equity/assets | 6.0% | 5.8% | 5.8% | P57 |
| Assets | C$2.112T | CAGR 4.1% | CAGR 6.6% | P47 |
| Long-term debt | C$458.1B | CAGR 14.0% | CAGR 15.5% | P57 |

## Company Note (Q3 2026)

Written by AI from the data above.

**TD's fiscal third quarter showed** the bank winning again. Revenue rose 10.4% from a year earlier as markets-driven businesses in Wholesale and Wealth gained from favorable conditions and margins widened. Structural cost cuts held expense growth low while the bank kept investing, and impaired loan loss provisions fell from the prior quarter, mainly in U.S. and Canadian commercial books. Diluted EPS climbed 45.0%. The shares look fairly priced: SE fair value of C$159 is 8.1% below the price.

**Management told the late-August call** that "TD is back to winning." It expects fiscal 2026 EPS growth and ROE to significantly outperform its 6%-8% growth target if macro conditions hold. It expects expense growth within its 3%-4% target and total loan losses near the lower end of the prior range. The plan includes 100 new U.S. branches by 2028, subject to regulatory approval. Analysts asked whether the U.S. asset cap limits that rollout. Management said the consent order remains its top priority.

**Consensus points the same way** as that guidance, with fiscal 2026 EPS seen rising 20.9% even as revenue is expected to fall 10.6%. Earnings growth is then forecast to slow to 10.5% in fiscal 2027. Our own projection sits below consensus on fiscal 2027 earnings, so the rebound may not carry fully into next year. The bank beat estimates in 6 of the last 8 quarters, which gives near-term numbers some credibility. Much of that strength already appears in the share price.

**Profitability has drifted lower**. Net margin moved from 35.2% in FY2022 to 29.5% in FY2025, and at 24.1% it now sits below its five-year median of 29.5%. That leaves it in the 13th percentile of peers. Net interest margin has held steady at 1.9%. ROTE of 15.4% edged down over three years but still ranks in the 70th percentile of peers. A thin return on assets and the share count are what hold Quality back.

**The multiples sit well** above the bank's own history. The P/E of 18.3x is 54% above its 10-year median of 11.9x. The P/B of 2.30x is 50% above its 10-year median of 1.53x. SE fair value of C$159 is 8.1% below the price, at high confidence. The analysts' weighted average target of C$184 is 6.1% above it. For the price to hold, the earnings recovery must persist while the consent order is worked through. A renewed slide in ROTE would show it is not.

**The SE Score** is 1 of 3. Quality earns two stars on a 13% ROE that comfortably clears a 5.5% cost of equity, although return on assets stays thin. Moat earns three stars because ROE topped 12% in 8 of the past 10 years and book value per share grew every year. Value earns no stars, since the price stands above SE fair value. That left the business tier as it was. The overall score was then lowered from two because TD's five-year return over the hurdle ranks below the top tier.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology