Financial PerformanceROE & ROTCE for the Big Six Canadian Banks are still trending lower, with negative implications for valuation.
ProfitabilityDeclining profitability has negative implications on valuation, which is expected to limit the potential for multiple expansion.
ValuationWith the stock up 13% over the last 2 months compared to an average of 4% for the builders under coverage, much of this is captured in the valuation, leaving analysts on the sidelines.