TD (The Toronto-Dominion Bank) Beneish M-Score: -2.55 (As of Jun. 24, 2026)


TD The Toronto-Dominion Bank TD
73 GF Score
Price $118.79
GF Value $76.52
Valuation Significantly Overvalued
! 8 Warning Signs
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What is The Toronto-Dominion Bank Beneish M-Score?

The Toronto-Dominion Bank TD -0.59% 73 Beneish M-Score is -2.55 as of Jun. 24, 2026. GuruFocus rates TD with a GF Score™ of 73/100 and a GF Value™ of $76.52 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,396 Banks companies, The Toronto-Dominion Bank ranks better than 76.15% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Toronto-Dominion Bank's Beneish M-Score or its related term are showing as below:

TD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -2.54   Max: -2.07
Current: -2.55

During the past 13 years, the highest Beneish M-Score of The Toronto-Dominion Bank was -2.07. The lowest was -3.42. And the median was -2.54.

TD
73GF Score
The Toronto-Dominion Bank TD
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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The Toronto-Dominion Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of The Toronto-Dominion Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.7961+0.528 * 1+0.404 * 0.9999+0.892 * 1.0978+0.115 * 0.9866
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9524+4.679 * 0.01108-0.327 * 1.0281
=-2.53

* 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.

This Year (Apr26) TTM:Last Year (Apr25) TTM:
Total Receivables was $34,668 Mil.
Revenue was 11560.273 + 11982.427 + 11362.597 + 11308.159 = $46,213 Mil.
Gross Profit was 11560.273 + 11982.427 + 11362.597 + 11308.159 = $46,213 Mil.
Total Current Assets was $0 Mil.
Total Assets was $1,515,999 Mil.
Property, Plant and Equipment(Net PPE) was $7,255 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,599 Mil.
Selling, General, & Admin. Expense(SGA) was $19,349 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $165,891 Mil.
Net Income was 3090.737 + 2935.88 + 2344.867 + 2436.637 = $10,808 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 7445.834 + 9138.77 + -6729.339 + -15843.985 = $-5,989 Mil.
 Total Receivables was $39,667 Mil.
Revenue was 10731.707 + 10355.827 + 10716.726 + 10290.944 = $42,095 Mil.
Gross Profit was 10731.707 + 10355.827 + 10716.726 + 10290.944 = $42,095 Mil.
Total Current Assets was $0 Mil.
Total Assets was $1,476,485 Mil.
Property, Plant and Equipment(Net PPE) was $6,946 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,506 Mil.
Selling, General, & Admin. Expense(SGA) was $18,506 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $157,156 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(34668.46 / 46213.456) / (39666.691 / 42095.204)
=0.750181 / 0.942309
=0.7961

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(42095.204 / 42095.204) / (46213.456 / 46213.456)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 7255.344) / 1515998.982) / (1 - (0 + 6945.855) / 1476485.23)
=0.995214 / 0.995296
=0.9999

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=46213.456 / 42095.204
=1.0978

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1505.866 / (1505.866 + 6945.855)) / (1598.943 / (1598.943 + 7255.344))
=0.178173 / 0.180584
=0.9866

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(19348.8 / 46213.456) / (18505.774 / 42095.204)
=0.418683 / 0.439617
=0.9524

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((165890.65 + 0) / 1515998.982) / ((157156.14 + 0) / 1476485.23)
=0.109427 / 0.106439
=1.0281

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(10808.121 - 0 - -5988.72) / 1515998.982
=0.01108

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The Toronto-Dominion Bank has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.55 mean?
The Toronto-Dominion Bank (TD) has a Beneish M-Score of -2.55 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on The Toronto-Dominion Bank and its competitors. According to the industry distribution chart, The Toronto-Dominion Bank ranks #333 out of 1396 companies in the Banks industry, placing it in the top 23.9%.
Is The Toronto-Dominion Bank's Beneish M-Score too high?
The Toronto-Dominion Bank's current Beneish M-Score is -2.55. Based on the distribution chart, The Toronto-Dominion Bank ranks #333 out of 1396 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, The Toronto-Dominion Bank has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Toronto-Dominion Bank's Beneish M-Score compare to JPM and BAC?
According to the Banks industry distribution chart, The Toronto-Dominion Bank ranks #333 out of 1396 companies for Beneish M-Score. This places The Toronto-Dominion Bank in the top 24% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on The Toronto-Dominion Bank and its competitors. The Toronto-Dominion Bank's current Beneish M-Score is -2.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Toronto-Dominion Bank stock overvalued right now?
Based on GuruFocus' analysis, The Toronto-Dominion Bank (TD) is currently considered Significantly Overvalued. The stock's GF Value™ is $76.52, compared to a current price of $118.79 — trading 55.2% above its estimated fair value. The current Beneish M-Score is -2.55. The Toronto-Dominion Bank's overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For The Toronto-Dominion Bank (TD), the current Beneish M-Score is -2.55 as of Jun. 24, 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 The Toronto-Dominion Bank (TD) Overvalued in 2026?

Based on GuruFocus' analysis, The Toronto-Dominion Bank stock appears to be overvalued. The current stock price of $118.79 is trading 55.2% above its estimated GF Value™ of $76.52. GuruFocus considers The Toronto-Dominion Bank to be Significantly Overvalued.

Key valuation signals for TD:

  • Beneish M-Score: -2.55
  • GF Value™: $76.52 vs. price of $118.79 (55.2% above fair value)
  • GF Score™: 73/100 with 8 warning signs

No single metric tells the full story. See the TD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The Toronto-Dominion Bank Business Description

Address Toronto-Dominion Centre, P.O. Box 1, Toronto, ON, CAN, M5K 1A2
Toronto-Dominion is one of Canada's two largest banks with over CAD 2 trillion in assets by the end of April 2026. TD Bank operates four business segments: Canadian personal and commercial banking, US retail banking, wealth management and insurance, and wholesale banking. The bank derives more than 50% of its revenue from Canada and has dominant market shares in nearly all banking products and services. TD has around 44% of its revenue from its US operations. Its US footprint spans from Maine to Florida, with a strong presence in the Northeast.
73GF Score

Get the complete analysis for TD

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$118.79
Price
$76.52
GF Value