DFY.TO (DFY) Fair Value & Analysis
Financial Services · CA · Market cap C$9.5B (≈ $6.9B) · ISIN CA24477T1003
What is DFY.TO really worth?
A solid business, but trading 99% above our fair value of C$37.10.
Strengths
Risks
For context
Fair value as of: Aug 14, 2026
From 6 valuation models · updated 22 days ago
Fair value updated Aug 14, 2026, revised from C$45.22 to C$37.10 (−18.0%) since Jul 16, 2026. Share price −9.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (C$46.37). The favourable scenario is already priced in.
- Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.
How to read this chart
57‑month range C$25.02 – C$81.78 · fair‑value band C$27.83 – C$46.37 · the C$73.65 price screens above the C$37.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.
Analysis
DFY.TO (DFY) currently trades at C$73.65, while our model-based Fair Value estimate is C$37.10, implying the stock looks roughly 98.5% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of C$45.22 per share, and 0 of the 6 models we run sit above the C$73.65 price. Bear case: the Dividend Discount group reads lowest at C$11.13, and 6 of the 6 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, DFY.TO generated revenue of C$5.3B at a net margin of 7.3%. Revenue grew 57.1% year over year. It earns a return on equity of 10.1%. Net debt stands at C$809M. Fundamentals as of Aug 14, 2026
Our scenario range runs from C$27.83 (bear case) to C$46.37 (bull case); at C$73.65, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 19% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −3% fair-value upside, at −50%, DFY screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly C$1.67 per share, which is 4.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 6 models by family
Widest divergence: Multiples (C$45.22) versus Dividend Discount (C$11.13). Highest evidence: Residual Income (75).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 52 · Market factors (momentum, volatility) 64
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Definity Financial Corporation, together with its subsidiaries, offers property and casualty insurance products in Canada.
Full company description
Definity Financial Corporation, together with its subsidiaries, offers property and casualty insurance products in Canada. It provides personal insurance products, including auto, property, and pet insurance products to individuals under the Economical, Sonnet, Family, and Petline brands; and commercial insurance products, includes fleet, commercial auto, property, liability, and specialty insurance products to businesses. The company distributes its products on a primarily intermediated basis and through brokers, as well as directly to customers. It markets its commercial insurance products to small businesses and mid-market companies. The company was formerly known as Economical Holdings Corporation and changed its name to Definity Financial Corporation in August 2021. Definity Financial Corporation was founded in 1871 and is headquartered in Waterloo, Canada.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
DFY.TO reported revenue of C$4.9B in FY2025 versus C$2.9B in FY2021, a compound +13.7%/yr. Reported net income was C$418M in FY2025, compounding +18.3%/yr from FY2021.
DFY screens 99% overvalued. Compare with The Progressive Corporation →
Peer Group
Insurance - Property & Casualty · 117 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Insurance - Property & Casualty median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Insurance - Property & Casualty stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The Progressive Corporation PGR | $217.65 | $160.25 | −26% |
| Chubb Limited CB | $338.31 | $234.73 | −31% |
| The Travelers Companies, Inc TRV | $369.90 | $274.42 | −26% |
| The Allstate Corporation ALL | $260.58 | $316.11 | +21% |
| The People's Insurance Company 601319 | ¥7.14 | ¥11.61 | +63% |
| PICC Property and Casualty Company 2328 | HK$15.25 | HK$22.27 | +46% |
| Intact Financial Corporation IFC | C$274.14 | C$167.46 | −39% |
| Fairfax Financial Holdings FFH | C$2,281 | C$2,926 | +28% |
| QBE Insurance Group QBE | A$22.62 | A$14.20 | −37% |
| Cincinnati Financial Corporation CINF | $171.97 | $166.34 | −3% |
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