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The Toronto-Dominion Bank has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
The Toronto-Dominion Bank displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate The Toronto-Dominion Bank's interest coverage with the available data.
The Toronto-Dominion Bank's debt to revenue ratio for the quarter that ended in Jul. 2026 was 6.77.
Altman Z-Score does not apply to banks and insurance companies.
The Toronto-Dominion Bank (FRA:TDB) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
The Toronto-Dominion Bank has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
The Toronto-Dominion Bank Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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 (FRA:TDB) has a Financial Strength of 2 as of Jul. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Toronto-Dominion Bank and its competitors. This is 33% below median its historical median of 3.00. Over the past decade, The Toronto-Dominion Bank's Financial Strength has ranged from 2.00 to 7.00.
Is The Toronto-Dominion Bank's Financial Strength too high?
The Toronto-Dominion Bank's current Financial Strength of 2 is 33% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, The Toronto-Dominion Bank has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Toronto-Dominion Bank's Financial Strength compare to JPM and BAC?
The Toronto-Dominion Bank's Financial Strength of 2 can be compared against companies in the Banks industry. Historically, The Toronto-Dominion Bank's own Financial Strength has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Toronto-Dominion Bank and its competitors. The Toronto-Dominion Bank's current Financial Strength is 2, which is 33% below median its own 10-year median of 3.00. 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 (FRA:TDB) is currently considered Significantly Overvalued. The stock's GF Value™ is €68.33, compared to a current price of €103.42 — trading 51.4% above its estimated fair value. The current Financial Strength is 2, which is 33% below median its 10-year median of 3.00. The Toronto-Dominion Bank's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For The Toronto-Dominion Bank (FRA:TDB), the current Financial Strength is 2 as of Jul. 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 (FRA:TDB) Overvalued in 2026?
Based on GuruFocus' analysis, The Toronto-Dominion Bank stock appears to be overvalued.
The current stock price of €103.42 is trading 51.4% above its estimated GF Value™ of €68.33.
GuruFocus considers The Toronto-Dominion Bank to be Significantly Overvalued.
Key valuation signals for FRA:TDB:
Financial Strength: 2 (33% below median its 10-year median of 3.00)
GF Value™: €68.33 vs. price of €103.42 (51.4% above fair value)
No single metric tells the full story. See the FRA:TDB 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.
74GF Score
Get the complete analysis for FRA:TDB
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