Definity Financial (TSX:DFY) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Definity Financial Forward PE Ratio Related Terms
Definity Financial Forward PE Ratio Historical Data
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The historical data trend for Definity Financial's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Definity Financial Forward PE Ratio Chart
Definity Financial Annual Data
Trend
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
16.78
13.93
17.91
20.36
Definity Financial Quarterly Data
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
18.62
17.99
18.05
16.78
15.50
15.72
14.60
13.93
15.46
16.78
17.30
17.91
19.26
25.27
18.98
20.36
17.25
TSX:DFY vs CB, PGR, TRV: Forward PE Ratio Comparison
For the Insurance - Property & Casualty subindustry, Definity Financial's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Definity Financial Forward PE Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Definity Financial's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Definity Financial's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Definity Financial (TSX:DFY) has a Forward PE Ratio of 20.38 as of Jul. 13, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Definity Financial and its competitors. According to the industry distribution chart, Definity Financial ranks #237 out of 274 companies in the Insurance industry, placing it in the top 86.5%.
Is Definity Financial's Forward PE Ratio too high?
Definity Financial's current Forward PE Ratio is 20.38. The Insurance industry median Forward PE Ratio is 11.68. Definity Financial's value of 20.38 is 74.5% above this industry median. Based on the distribution chart, Definity Financial ranks #237 out of 274 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Definity Financial has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Definity Financial's Forward PE Ratio compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #237 out of 274 companies for Forward PE Ratio. This places Definity Financial in the lower half of its industry. The industry median Forward PE Ratio is 11.68. Definity Financial's value of 20.38 is 74.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Insurance company?
The median Forward PE Ratio among Insurance companies is 11.68, based on 274 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Definity Financial's current Forward PE Ratio of 20.38 is 74.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Definity Financial and its competitors. For the Insurance industry, the median Forward PE Ratio is 11.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definity Financial's current Forward PE Ratio is 20.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definity Financial stock overvalued right now?
Based on GuruFocus' analysis, Definity Financial (TSX:DFY) is currently considered Fairly Valued. The stock's GF Value™ is C$71.93, compared to a current price of C$78.64 — trading 9.3% above its estimated fair value. The current Forward PE Ratio is 20.38 and 74.5% above the Insurance industry median of 11.68. Definity Financial's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Definity Financial (TSX:DFY), the current Forward PE Ratio is 20.38 as of Jul. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Definity Financial (TSX:DFY) Overvalued in 2026?
Based on GuruFocus' analysis, Definity Financial stock appears to be overvalued.
The current stock price of C$78.64 is trading 9.3% above its estimated GF Value™ of C$71.93.
GuruFocus considers Definity Financial to be Fairly Valued.
Key valuation signals for TSX:DFY:
Forward PE Ratio: 20.38
GF Value™: C$71.93 vs. price of C$78.64 (9.3% above fair value)
Industry Position: 74.5% above the Insurance median (#237 of 274)
No single metric tells the full story. See the TSX:DFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Definity Financial Corp is a property and casualty insurance services provider. It serves the insurance needs of individual, commercial, and farm customers. Its product portfolio includes Personal auto insurance, Personal home insurance, Group auto insurance, Group home insurance, Business property insurance, Business liability insurance, Commercial vehicle insurance, Surety bonds, Oilfield services insurance, General farm insurance, Premier cash crop insurance, and Winery insurance.
76GF Score
Get the complete analysis for TSX:DFY
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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