The Toronto-Dominion Bank (TD) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Diversified
EV/EBITDA
↑
31.05
+7% vs avg
5yr avg: 28.97
30Y Low8.9·High45.0
P/FCF
↓
N/A
—
5yr avg: 2.54
30Y Low0.4·High27.2
P/B Ratio
↓
2.10
↑+101% vs avg
5yr avg: 1.04
30Y Low0.8·High2.5
ROE
↑
16.9%
↓+29% vs avg
5yr avg: 13.1%
30Y Low-0%·High29%
Debt/EBITDA
↑
25.41
↓-17% vs avg
5yr avg: 30.62
30Y Low4.0·High48.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Toronto-Dominion Bank trades at 13.5x earnings, 50% above its 5-year average of 9.0x, sitting at the 79th percentile of its historical range. This is roughly in line with the Financial Services sector median P/E of 13.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $189.8B | $141.2B | $97.3B | $101.9B | $116.1B | $132.0B | $80.0B | $104.3B | $102.0B | $105.4B | $84.3B |
| Enterprise Value | $582.7B | $687.8B | $581.8B | $565.5B | $472.3B | $367.0B | $356.8B | $480.5B | $424.8B | $372.9B | $293.8B |
| P/E Ratio → | 13.52 | 7.10 | 11.71 | 10.12 | 6.76 | 9.39 | 6.88 | 9.13 | 9.23 | 10.34 | 9.72 |
| P/S Ratio | 2.28 | 1.22 | 0.82 | 1.00 | 1.95 | 2.77 | 1.46 | 1.77 | 1.94 | 2.35 | 2.07 |
| P/B Ratio | 2.10 | 1.10 | 0.84 | 0.91 | 1.04 | 1.32 | 0.84 | 1.19 | 1.27 | 1.40 | 1.14 |
| P/FCF | — | — | 1.84 | — | 3.10 | 2.69 | 0.35 | — | 19.98 | 4.10 | 2.30 |
| P/OCF | — | — | 1.77 | — | 2.98 | 2.63 | 0.35 | 125.64 | 17.92 | 4.04 | 2.25 |
P/E links to full P/E history page with 30-year chart
TD EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Toronto-Dominion Bank's enterprise value stands at 31.0x EBITDA, 7% above its 5-year average of 29.0x. The Financial Services sector median is 11.0x, placing the stock at a 182% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.94 | 4.88 | 5.53 | 7.95 | 7.69 | 6.53 | 8.16 | 8.06 | 8.32 | 7.23 |
| EV / EBITDA | 31.05 | 26.34 | 42.91 | 36.10 | 20.37 | 19.11 | 25.38 | 32.84 | 28.01 | 27.36 | 24.52 |
| EV / EBIT | 33.85 | 28.72 | 50.45 | 41.12 | 22.05 | 21.42 | 29.95 | 36.32 | 30.84 | 30.26 | 27.60 |
| EV / FCF | — | — | 11.03 | — | 12.60 | 7.49 | 1.56 | — | 83.20 | 14.51 | 8.03 |
TD Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Toronto-Dominion Bank earns an operating margin of 20.7%, roughly in line with the Financial Services sector average. Operating margins have expanded from 13.4% to 20.7% over the past 3 years, signaling improving operational efficiency. ROE of 16.9% indicates solid capital efficiency, compared to the sector median of 9.3%. ROIC of 2.3% represents below-average returns on invested capital versus a sector median of 5.6%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.0% | 49.0% | 43.6% | 47.5% | 75.2% | 89.0% | 66.0% | 64.1% | 68.4% | 75.0% | 77.9% |
| Operating Margin | 20.7% | 20.7% | 9.7% | 13.4% | 36.0% | 35.9% | 21.8% | 22.5% | 26.1% | 27.5% | 26.2% |
| Net Profit Margin | 17.7% | 17.7% | 7.4% | 10.4% | 29.3% | 30.0% | 21.8% | 19.8% | 21.4% | 23.2% | 21.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.9% | 16.9% | 7.8% | 9.5% | 16.5% | 14.6% | 13.0% | 13.9% | 14.5% | 13.9% | 12.5% |
| ROA | 1.0% | 1.0% | 0.4% | 0.5% | 1.0% | 0.8% | 0.8% | 0.8% | 0.9% | 0.8% | 0.8% |
| ROIC | 2.3% | 2.3% | 1.2% | 1.6% | 2.9% | 2.5% | 1.7% | 2.1% | 2.5% | 2.5% | 2.6% |
| ROCE | 5.4% | 5.4% | 2.7% | 3.4% | 5.9% | 5.1% | 3.4% | 4.0% | 4.4% | 4.0% | 5.1% |
TD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Toronto-Dominion Bank carries a Debt/EBITDA ratio of 25.4x, which is highly leveraged (506% above the sector average of 4.2x). Net debt stands at $546.6B ($663.6B total debt minus $116.9B cash). Interest coverage of just 0.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 5.19 | 5.19 | 5.75 | 5.07 | 4.51 | 4.02 | 4.68 | 4.64 | 4.48 | 4.29 | 3.60 |
| Debt / EBITDA | 25.41 | 25.41 | 48.86 | 36.31 | 21.66 | 20.88 | 31.83 | 27.79 | 23.62 | 23.67 | 22.30 |
| Net Debt / Equity | — | 4.28 | 4.21 | 4.14 | 3.20 | 2.35 | 2.90 | 4.29 | 4.03 | 3.56 | 2.82 |
| Net Debt / EBITDA | 20.93 | 20.93 | 35.73 | 29.60 | 15.37 | 12.24 | 19.69 | 25.71 | 21.29 | 19.62 | 17.49 |
| Debt / FCF | — | — | 9.18 | — | 9.50 | 4.80 | 1.21 | — | 63.22 | 10.41 | 5.73 |
| Interest Coverage | 0.44 | 0.44 | 0.18 | 0.27 | 1.57 | 3.14 | 1.05 | 0.73 | 0.97 | 1.37 | 1.60 |
TD Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.12x is below 1.0, meaning current liabilities exceed current assets — though the company's $116.9B cash position helps mitigate short-term liquidity concerns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.12 | 0.12 | 0.17 | 0.11 | 0.13 | 0.17 | 0.18 | 0.08 | 0.09 | 0.25 | 0.22 |
| Quick Ratio | 0.12 | 0.12 | 0.17 | 0.11 | 0.13 | 0.17 | 0.18 | 0.08 | 0.09 | 0.25 | 0.22 |
| Cash Ratio | 0.07 | 0.07 | 0.11 | 0.07 | 0.10 | 0.12 | 0.13 | 0.03 | 0.03 | 0.06 | 0.07 |
| Asset Turnover | — | 0.06 | 0.06 | 0.05 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
TD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Toronto-Dominion Bank returns 10.7% to shareholders annually — split between a 2.9% dividend yield and 7.9% buyback yield. The payout ratio of 37.3% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 7.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 5.4% | 7.4% | 5.7% | 5.7% | 4.2% | 4.6% | 4.9% | 4.5% | 4.0% | 4.5% |
| Payout Ratio | 37.3% | 37.3% | 81.0% | 54.8% | 38.2% | 38.9% | 30.8% | 44.2% | 41.1% | 40.5% | 43.2% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.4% | 14.1% | 8.5% | 9.9% | 14.8% | 10.6% | 14.5% | 11.0% | 10.8% | 9.7% | 10.3% |
| FCF Yield | — | — | 54.2% | — | 32.3% | 37.1% | 285.4% | — | 5.0% | 24.4% | 43.4% |
| Buyback Yield | 7.9% | 14.8% | 17.6% | 13.0% | 12.3% | 8.4% | 12.3% | 11.7% | 10.2% | 10.6% | 7.6% |
| Total Shareholder Yield | 10.7% | 20.2% | 25.0% | 18.7% | 18.1% | 12.6% | 16.9% | 16.6% | 14.8% | 14.6% | 12.1% |
| Shares Outstanding | — | $1.7B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.9B | $1.9B |
Peer Comparison
Compare TD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TDYou | $190B | 13.5 | 31.0 | — | 49.0% | 20.7% | 16.9% | 2.3% | 25.4 |
 BMO | $114B | 19.7 | 36.6 | 18.6 | 41.6% | 14.8% | 10.1% | 1.8% | 30.2 |
 BNS | $98B | 19.6 | 47.5 | 27.1 | 44.3% | 14.4% | 9.0% | 1.6% | 41.6 |
 RY | $267B | 18.9 | 38.9 | 7.0 | 45.3% | 18.7% | 15.3% | 2.0% | 29.1 |
 CM | $100B | 17.4 | 36.2 | — | 43.0% | 17.6% | 13.7% | 2.1% | 29.4 |
 USB | $83B | 11.5 | 11.0 | — | 62.8% | 22.2% | 12.2% | 5.2% | 7.6 |
 PNC | $88B | 15.9 | 13.8 | 11.2 | 59.4% | 21.5% | 11.2% | 4.5% | 8.2 |
 JPM | $811B | 15.2 | 13.2 | — | 58.6% | 27.7% | 17.4% | 5.4% | 9.0 |
 BAC | $399B | 13.7 | 14.6 | 31.6 | 55.4% | 18.5% | 10.2% | 3.2% | 10.0 |
 WFC | $243B | 14.7 | 10.4 | 80.2 | 62.2% | 18.6% | 10.7% | 3.7% | 9.1 |
 C | $227B | 21.8 | 25.3 | — | 41.7% | 10.0% | 6.1% | 1.6% | 27.7 |
| Financial Services Median | — | 13.0 | 11.0 | 10.5 | 63.7% | 21.3% | 9.3% | 5.6% | 4.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Run the NumbersIs TD Undervalued Right Now?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
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Side-by-side revenue, margins, P/E and 10-year returns vs Bank of Montreal.
Compare NowTD — Frequently Asked Questions
Quick answers to the most common questions about buying TD stock.
What is The Toronto-Dominion Bank's P/E ratio?
The Toronto-Dominion Bank's current P/E ratio is 13.5x. The historical average is 11.0x. This places it at the 79th percentile of its historical range.
What is The Toronto-Dominion Bank's EV/EBITDA?
The Toronto-Dominion Bank's current EV/EBITDA is 31.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.6x.
What is The Toronto-Dominion Bank's ROE?
The Toronto-Dominion Bank's return on equity (ROE) is 16.9%. The historical average is 13.4%.
Is TD stock overvalued?
Based on historical data, The Toronto-Dominion Bank is trading at a P/E of 13.5x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Toronto-Dominion Bank's dividend yield?
The Toronto-Dominion Bank's current dividend yield is 2.85% with a payout ratio of 37.3%.
What are The Toronto-Dominion Bank's profit margins?
The Toronto-Dominion Bank has 49.0% gross margin and 20.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does The Toronto-Dominion Bank have?
The Toronto-Dominion Bank's Debt/EBITDA ratio is 25.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.