Definity Financial Corporation (DFY) Fair Value & Analysis
Financial Services · CA · Market cap C$9.5B
Fair value as of: Jul 16, 2026
From 6 valuation models · updated 25 days ago
Share price +1.3% over the past month.
A solid business, but screening 43% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (C$56.53). 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 Jul 16, 2026.
How to read this chart
57‑month range C$25.02 – C$81.78 · fair‑value band C$33.92 – C$56.53 · the C$80.00 price screens above the C$45.22 fair value. Dashed = 300-day average. As of Jul 16, 2026.
Analysis
Definity Financial Corporation (DFY) currently trades at C$80.00, while our model-based Fair Value estimate is C$45.22, implying the stock looks roughly 43.5% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Definity Financial Corporation 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 Jul 16, 2026
Our scenario range runs from C$33.92 (bear case) to C$56.53 (bull case); at C$80.00, 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 near its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 8% fair-value upside, at -43%, DFY screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 6 models by family
Widest divergence: Multiples (C$45.22) versus Dividend Discount (C$11.13). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 52 · Market factors (momentum, volatility) 73
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.
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
Definity Financial Corporation 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 43% overvalued. Compare with The Progressive Corporation →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Definity Financial Corp (DFYFF) (Q2 2026) Earnings Call Highlights: Premiums Surge 34.7% to $1. ...
- Definity Financial Corporation Reports Second Quarter 2026 Results
- DEFINITY FINANCIAL CORPORATION TO ANNOUNCE SECOND QUARTER 2026 RESULTS ON JULY 30, 2026, AND HOLD ITS EARNINGS CONFERENCE CALL THE FOLLOWING
- DEFINITY WELCOMES SILVIA MONTEFIORE TO ITS BOARD OF DIRECTORS
Peer Group
Insurance - Property & Casualty · 120 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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Insurance - Property & Casualty stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The Progressive Corporation PGR | $234.48 | $252.50 | +8% |
| Chubb Limited CB | $337.44 | $345.56 | +2% |
| The Travelers Companies, Inc TRV | $368.98 | $384.42 | +4% |
| The Allstate Corporation ALL | $251.61 | $503.22 | +100% |
| The People's Insurance Company 601319 | ¥7.06 | ¥13.71 | +94% |
| Intact Financial Corporation IFC | C$294.02 | C$247.44 | -16% |
| Fairfax Financial Holdings FFH | C$2,327 | C$3,252 | +40% |
| QBE Insurance Group QBE | A$25.47 | A$19.42 | -24% |
| Samsung Fire & Marine Insurance Co 000810 | 648,000 KRW | 658,771 KRW | +2% |
| Powszechny Zaklad Ubezpieczen SA PZU | 69.80 PLN | 100.85 PLN | +44% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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