The Toronto-Dominion Bank

OVERVALUEDTD · NYSE · Financial Services
TD·NYSE·Financial Services
OVERVALUED
The Toronto-Dominion Bank
24.6%downside
MARKET PRICE
$106.89
FAIR PRICE
$80.60
MARGIN
$26.30
UNDERVALUEDFAIROVERVALUED
P/E RATIO
12.4x
DIV. YIELD
3.67%
ROE
16.5%
MARKET CAP
$241B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

24.6%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$106.89

FAIR PRICE

$80.60

MARGIN

$26.30

UNDERVALUEDFAIROVERVALUED

P/E Ratio

12.4x

What is P/E? →

Div. Yield

3.67%

ROE

16.5%

Strong

Market Cap

$241B

Mega-cap

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FPI RATING

3.8/ 10

High-quality fundamentals, but elevated debt levels.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$64.48CONSERVATIVE ENTRY
$80.60FAIR PRICE
$106.89MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$64.48

Fair price × 0.80

DISTANCE

39.7%

Price to entry level

At the current price of $106.89, TD trades 39.7% above the conservative entry level of $64.48. This entry level represents a 20% margin of safety below the calculated fair price of $80.60 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate TD's fair price

The Toronto-Dominion Bank's fair price of $80.60 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $106.89, TD trades 24.6% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting TD's risk profile.

RELATIVE · 30%

Comparing TD's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for TD, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate TD's fair value with your own inputs.

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FAQ

What is the fair price of TD?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for The Toronto-Dominion Bank is $80.60. At the current market price of $106.89, TD trades 24.6% above its calculated fair value.

Is TD overvalued or undervalued?+

The Toronto-Dominion Bank is currently overvalued based on our valuation model. The stock trades at $106.89, which is 24.6% above the fair price of $80.60. The P/E ratio of 12.4x is a key metric in the valuation.

What is the margin of safety for TD?+

With a 20% margin of safety applied to the fair price of $80.60, the conservative entry level for TD is $64.48. At the current market price of $106.89, the stock trades 39.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is TD's fair price updated?+

We update fair price calculations for TD daily after market close. The current fair price of $80.60 incorporates the latest market data and sector multiples.

What factors affect TD's fair price calculation?+

TD's fair price of $80.60 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 12.4x, ROE of 16.5%, and dividend yield of 3.67%.

Is TD a good buy right now?+

At $106.89, TD trades 24.6% above our fair value estimate of $80.60. The stock is currently overvalued. ROE stands at 16.5% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does TD pay dividends?+

TD has a dividend yield of 3.67%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.