Forex
National Bank of Canada Valuation Stretched Amid Canadian Economic Headwinds
The National Bank of Canada has delivered strong Q3 '26 results, but its valuation is currently above historical norms.
The bank's stock trades at a premium valuation of 17-18 times earnings per share (P/E), which is unwarranted given the rising mortgage delinquencies and consumer insolvencies in Canada.
Despite solid execution, particularly after its acquisition of CWB, the risk-reward scenario is unattractive at present multiples. The analyst recommends buying the stock only at a significant discount.