The Toronto-Dominion Bank (TD): What Does Valuation Ratios Tell Us?

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The Toronto-Dominion Bank (NYSE:TD) saw a downside of -0.45% to $66.90 after subtracting -$0.3 on Wednesday. The 5-day average trading volume is 1,273,424 shares of the company’s common stock. It has gained $67.42 in the past week and touched a new high 4 times within the past 5 days. An average of 1,875,551 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,711,142.

TD’s 1-month performance is 3.77% or $1.95 on its low of $63.30 reached on 01/11/23. The company’s shares have touched a 52-week low of $57.27 and high of $86.01, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, TD has achieved 3.77% or $2.17 and has reached a new high 5 times. However, the current price is down -22.22% from the 52-week high price.

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Valuation Metrics

TD stock has a beta of 0.87. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.96 while the price-to-book (PB) in the most recent quarter is 1.64, with the price to cash flow ratio at 5.26.

As well, the company’s long term debt to equity for the quarter ending October 30 was 0.59, while the total debt to equity was 3.52. The firm’s gross profit as reported stood at $21.25 billion against revenue of $31.87 billion.

Earnings Surprise

For the quarterly period ending October 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected TD to announce $1.53 per share in earnings in its latest quarter, but it posted $1.63, representing a 6.50% surprise.

Let’s look briefly at The Toronto-Dominion Bank (TD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 59.84% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.13%.

The stock’s 5-day moving average is $66.71, reflecting a +1.49% or $0.98 change from its current price. TD is currently trading +3.00% above its 20-day SMA, +4.03% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -0.06% and SMA200 by-12.65%.

Stochastic %K and %D was 90.09% and 84.73% and the average true range (ATR) pointed at 1.17. The RSI (14) points at 57.03%, while the 14-day stochastic is at 87.05% with the period’s ATR at 1.20. The stock’s 9-day MACD Oscillator is pointing at 0.50 and 1.37 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Toronto-Dominion Bank (NYSE: TD), Canaccord Genuity upgraded it to a Buy rating. They previously had a Hold rating on the stock.


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