The Toronto-Dominion Bank (TD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+69.3%

$213.51

vs $126.08 price

Levered DCF

$175.32

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.1

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.94×	16.28×	14.01×	9.2×	11.7×	9.16×	12×	12.12×
P/B	1.54×	1.18×	1.26×	1.42×	1.65×	1.11×	1.56×	1.69×
P/S	1.7×	1.14×	1.38×	2.66×	3.45×	1.95×	2.33×	2.54×
EV / EBITDA	28.49×	45.72×	38.61×	22.18×	20.8×	27.27×	35.07×	30.12×
Gross margin	49.0%	43.6%	47.5%	75.2%	89.0%	66.0%	64.1%	68.4%
Operating margin	20.7%	9.7%	13.4%	36.0%	35.9%	21.8%	22.5%	26.1%
Net margin	17.7%	7.4%	10.4%	29.3%	30.0%	21.8%	19.8%	21.4%
Current ratio	0.12×	0.17×	0.11×	0.13×	0.17×	0.18×	0.08×	0.09×
Debt / equity	5.19×	5.75×	5.07×	4.51×	4.02×	4.68×	4.64×	4.53×
Interest coverage	0.44×	0.18×	0.27×	1.57×	3.14×	1.05×	0.73×	0.97×
Dividend yield	3.9%	5.3%	4.1%	4.2%	3.4%	3.4%	3.8%	3.5%
Payout ratio	37.3%	81.0%	54.8%	38.2%	38.9%	30.8%	44.2%	41.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.1%	7.7%	9.5%	15.6%	14.3%	12.5%	13.3%	14.2%
Return on invested capital	2.3%	1.0%	1.3%	2.3%	2.3%	1.7%	1.8%	2.0%
Return on assets	1.0%	0.4%	0.5%	0.9%	0.8%	0.7%	0.8%	0.8%
Free cash flow yield	-36.4%	39.0%	-47.6%	23.8%	29.8%	214.5%	-0.4%	3.8%
Earnings yield	10.4%	6.5%	7.5%	11.0%	8.7%	11.2%	8.5%	8.4%
Enterprise value	$744.1B	$620B	$604.8B	$514B	$399.4B	$383.2B	$513.3B	$456.7B
Net debt / EBITDA	20.93×	35.73×	29.6×	15.37×	12.24×	19.69×	25.71×	21.29×
Cash conversion cycle (days)	-108	-80	-102	-547	-2,250	-512	-308	-483