The Toronto-Dominion BankTD -0.72%73 Pretax Margin % is 31.61% as of Apr. 2026, which is 5% below its 10-year median of 33.43. GuruFocus rates TD with a GF Score™ of 73/100 and a GF Value™ of $76.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,527 Banks companies, The Toronto-Dominion Bank ranks worse than 65.62% on this metric.
The historical rank and industry rank for The Toronto-Dominion Bank's Pretax Margin % or its related term are showing as below:
TD'
s Pretax Margin % Range Over the Past 10 Years
Min: 19.25 Med: 33.43 Max: 44.63
Current: 29.07
TD's Pretax Margin % is ranked worse than 65.62% of 1527
companies
in the Banks industry
Industry Median: 34.88
vs TD: 29.07
The Toronto-Dominion Bank (NYSE:TD) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
The Toronto-Dominion Bank Pretax Margin % Related Terms
The Toronto-Dominion Bank Pretax Margin % Historical Data
* 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.
For the Banks - Diversified subindustry, The Toronto-Dominion Bank's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
The Toronto-Dominion Bank Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, The Toronto-Dominion Bank's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where The Toronto-Dominion Bank's Pretax Margin % falls into.
* 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.
The Toronto-Dominion Bank (TD) has a Pretax Margin % of 31.61% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Toronto-Dominion Bank and its competitors. This is near median its historical median of 33.43. Over the past decade, The Toronto-Dominion Bank's Pretax Margin % has ranged from 19.25 to 44.63. According to the industry distribution chart, The Toronto-Dominion Bank ranks #1002 out of 1527 companies in the Banks industry, placing it in the top 65.6%.
Is The Toronto-Dominion Bank's Pretax Margin % too high?
The Toronto-Dominion Bank's current Pretax Margin % of 31.61% is near median its 10-year median of 33.43. Over the past 10 years, this metric has ranged from a low of 19.25 to a high of 44.63. The Banks industry median Pretax Margin % is 34.88. The Toronto-Dominion Bank's value of 31.61% is 9.4% below this industry median. Based on the distribution chart, The Toronto-Dominion Bank ranks #1002 out of 1527 companies in the Banks industry, which is below the industry midpoint. 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 Pretax Margin % compare to JPM and BAC?
According to the Banks industry distribution chart, The Toronto-Dominion Bank ranks #1002 out of 1527 companies for Pretax Margin %. This places The Toronto-Dominion Bank in the lower half of its industry. The industry median Pretax Margin % is 34.88. The Toronto-Dominion Bank's value of 31.61% is 9.4% below this benchmark. Historically, The Toronto-Dominion Bank's own Pretax Margin % has ranged from 19.25 to 44.63 over the past decade. While the company's 10-year median is 33.43 vs. the industry median of 34.88, The Toronto-Dominion Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Toronto-Dominion Bank's current Pretax Margin % of 31.61% is 9.4% below 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Toronto-Dominion Bank and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Toronto-Dominion Bank's current Pretax Margin % is 31.61%, which is near median its own 10-year median of 33.43. 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 $76.66, compared to a current price of $119.62 — trading 56% above its estimated fair value. The current Pretax Margin % is 31.61%, which is near median its 10-year median of 33.43 and 9.4% below the Banks industry median of 34.88. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For The Toronto-Dominion Bank (TD), the current Pretax Margin % is 31.61% as of Apr. 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 $119.62 is trading 56% above its estimated GF Value™ of $76.66.
GuruFocus considers The Toronto-Dominion Bank to be Significantly Overvalued.
Key valuation signals for TD:
Pretax Margin %: 31.61% (near median its 10-year median of 33.43)
GF Value™: $76.66 vs. price of $119.62 (56% above fair value)
Industry Position: 9.4% below the Banks median (#1002 of 1527)
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.
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
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