We've been asking ourselves recently if the market has placed a fair valuation on Toronto Dominion Bank. Let's dive into some of the fundamental values of this Large-Cap Finance company to determine if there might be an opportunity here for value-minded investors.
Toronto Dominion Bank Has Attractive P/B and P/E Ratios:
The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Toronto Dominion Bank has a trailing 12 month P/E ratio of 19.0 and a P/B ratio of 0.98.
Toronto Dominion Bank has moved 13.5% over the last year compared to 11.6% for the S&P 500 — a difference of 1.9%. Toronto Dominion Bank has a 52 week high of $64.97 and a 52 week low of $51.25.
A Declining EPS Growth Trend and Positive Cash Flows:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $43,646 | $42,693 | $49,032 | $50,690 | $57,223 | $14,049 |
| Interest Income (M) | $11,336 | $5,450 | $13,679 | $50,730 | $62,917 | $15,006 |
| Net Margins | 27% | 33% | 36% | 21% | 15% | 20% |
| Net Income (M) | $11,895 | $14,298 | $17,429 | $10,634 | $8,842 | $2,793 |
| Earnings Per Share | $6.43 | $7.72 | $9.47 | $5.52 | $4.72 | $1.55 |
| EPS Growth | n/a | 20.06% | 22.67% | -41.71% | -14.49% | -67.16% |
| Free Cash Flow (M) | $229,607 | $50,129 | $38,949 | -$65,302 | $54,937 | -$50,279 |
