Definity Financial Corp (DFY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Definity Financial Corp stock C$34.94, price C$74.57, that is 53.1% below the price, quality 50 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range C$25.02 – C$81.78 · fair‑value band C$27.85 – C$46.41 · the C$74.57 price screens above the C$34.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Definity Financial Corporation, together with its subsidiaries, offers property and casualty insurance products in Canada.
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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.
Stock analysis
Definity Financial Corp (DFY) currently trades at C$74.57, while our model-based Fair Value estimate is C$34.94, 53% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of C$37.13 per share, and 0 of the 6 models we run sit above the C$74.57 price.
Bear case: the Asset-Based group reads lowest at C$13.87, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: C$27.85 (bear) to C$46.41 (bull), the price of C$74.57 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 50/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Definity Financial Corp 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.
Key figures
Market cap C$9.1B (≈ $6.4B) Mid · P/E ratio 37.9 · P/S ratio 1.33 · EPS (TTM) C$1.97 · Dividend yield 1.1% · Net margin 3.5% · Return on equity 5.8% · Return on assets (EBIT) 5.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 35 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 20% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −29% fair-value upside, at −53%, DFY screens richer than that median.
Fair Value models
BearC$27.85Fair Value C$34.94BullC$46.41
Price C$74.57 · Downside -53.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (C$0.9719 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.6%
’18
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’22
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+22.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.3%
Dividend (yield on the price)1.1%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 12%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +6.2% a year for the price.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Very negative
AI conclusion: Definity shows strength in premium growth and integration progress that support scaling its property and casualty operations, while the main weak point is the absence of clear durable advantages amid moderate metrics.
Main risk: Ongoing exposure to weather events represents the biggest risk to Definity's business as recurring catastrophe losses can swing underwriting results and act as a drag on performance.
Definity's premium growth and integration progress show a business scaling up in property and casualty insurance. The latest catastrophe losses however highlight ongoing exposure to weather events that can swing underwriting results. Can improved pricing discipline and reinsurance keep pace with climate risks or will such hits remain a recurring drag on performance?
Compare Definity Financial Corp with another stock
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Peer Groupⓘ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.Insurance - Property & Casualty · 100 stocks
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Is Definity Financial Corp (DFY) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of C$34.94 versus a price of C$74.57, about 53% lower (overvalued).
What is the fair value of DFY?
Our model-based fair value for Definity Financial Corp is C$34.94 (as of Nov 7, 2026), built from audited fundamentals. The current price: C$74.57.
What is the quality score of DFY?
Definity Financial Corp has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Definity Financial Corp (DFY)?
Our model-based price target is the fair value of C$34.94 (as of Nov 7, 2026) from 6 valuation models. Cautious scenario C$27.85, optimistic scenario C$46.41. It is a calculation from audited fundamentals, not an analyst target.
What is the Definity Financial Corp stock forecast for 2026?
Our models put fair value at C$34.94, about 53% lower versus a price of C$74.57 (overvalued). Cautious scenario C$27.85, optimistic scenario C$46.41. The calculation is refreshed regularly with new filings.
What is the revenue of Definity Financial Corp (DFY)?
Definity Financial Corp reported trailing-twelve-month revenue of about C$6.9B (latest available figure, as of Nov 7, 2026).
Does Definity Financial Corp pay a dividend?
Definity Financial Corp currently shows a dividend yield of 1.12% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Definity Financial Corp (DFY) and when is the ex-dividend date?
Definity Financial Corp pays a dividend of C$0.833 per share a year, a dividend yield of 1.1%. The last ex-dividend date was Sep 11, 2026. A dividend has been paid every year since at least 2022. The payout ratio is 42.3% of earnings. Free cash flow covers the dividend 4.13 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Definity Financial Corp (DFY)?
For today's price to be fair in a discounted-cash-flow model, Definity Financial Corp would have to grow free cash flow by +8.4 % per year for five years (discount rate 8.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.6 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of DFY use?
Our models discount Definity Financial Corp at 8.3 %: a base by market capitalisation (mid), damped by beta 0.14, country premium for Canada. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Definity Financial Corp that is +8.4 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.3 %) and the same formula as our fair value.
How much growth has Definity Financial Corp (DFY) delivered so far?
Over the past 5 years revenue at Definity Financial Corp grew +12.6 % a year. The price currently implies free-cash-flow growth of +8.4 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Definity Financial Corp (DFY) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Definity Financial Corp (+8.4 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Definity Financial Corp (DFY)?
The free-cash-flow yield on the price is 4.54 %: that much free cash flow Definity Financial Corp produces per unit of market value. When it exceeds the discount rate of our models (8.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Definity Financial Corp (DFY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Definity Financial Corp it is C$34.94 per share (as of Nov 7, 2026), against a price of C$74.57. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is Definity Financial Corp stock overvalued or undervalued in 2026?
As of Nov 7, 2026, DFY trades above its calculated fair value: price C$74.57, fair value C$34.94, a gap of about −53% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DFY?
No. The price is what the market pays today (C$74.57); the fair value is what the company's own numbers justify (C$34.94). For Definity Financial Corp the two are C$39.63 per share apart. That gap is exactly why we show both numbers side by side.
How much is Definity Financial Corp worth?
The market values Definity Financial Corp at about C$9.1B (market capitalisation, as of Nov 7, 2026). Per share that is C$74.57; our models calculate a fair value of C$34.94 per share.
What do the bullish and bearish scenarios say about DFY?
Our models span a range for Definity Financial Corp: cautious scenario C$27.85, base C$34.94, optimistic C$46.41 per share (as of Nov 7, 2026, price C$74.57). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DFY?
Definity Financial Corp trades at a price-to-earnings ratio of 37.9 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$34.94 is built from several models across several years. Median P/E at fiscal year-end, 5 fiscal years (2021 to 2025), reported earnings, FY2025 ex one-offs: 15.8. Other multiples: P/B 2.2, P/S 1.3, EV/EBITDA 18.8.
How solid is the balance sheet of Definity Financial Corp (DFY)?
Balance-sheet figures for Definity Financial Corp (as of Nov 7, 2026): return on equity 5.8%, debt of 0.28 per unit of equity. They feed the Quality Score of 50/100, which measures business quality independently of the share price.
How far is DFY from its 52-week high?
Definity Financial Corp trades at C$74.57, about 9% below its 52-week high of C$81.78 and 20% above the low of C$62.02 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of C$34.94 is for.
Which stocks are comparable to Definity Financial Corp?
From the same area (Financial Services) we also value Chubb Limited, The Progressive Corporation, The Travelers Companies, Inc, The Allstate Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Definity Financial Corp stock attractive at the current price?
The data as of Nov 7, 2026: price C$74.57, calculated fair value C$34.94 (−53%), Quality Score 50/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DFY calculated?
We run Definity Financial Corp through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of C$34.94 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Definity Financial Corp itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Definity Financial Corp (DFY)?
The closing price on Nov 6, 2026 was C$74.57. Our model-based fair value is C$34.94, about 53% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Definity Financial Corp right now?
The price sits above even our optimistic bull case (C$46.41). The favourable scenario is already priced in. Solid but not exceptional quality (50/100) 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.
Key figures of Definity Financial Corp
How large is the market capitalisation of Definity Financial Corp (DFY)?
The market capitalisation of Definity Financial Corp is C$9.1B (≈ $6.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Definity Financial Corp (DFY)?
The price-to-sales ratio of Definity Financial Corp is 1.33 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Definity Financial Corp (DFY)?
Earnings per share at Definity Financial Corp are C$1.97 (price ÷ EPS = P/E 37.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Definity Financial Corp (DFY)?
The dividend yield of Definity Financial Corp is 1.1% (payout 42.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Definity Financial Corp (DFY)?
The net margin of Definity Financial Corp is 3.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Definity Financial Corp (DFY)?
The return on equity (ROE) of Definity Financial Corp is 5.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Definity Financial Corp (DFY)?
On an EBIT basis the return on assets of Definity Financial Corp is 5.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Definity Financial Corp (DFY)?
The operating margin of Definity Financial Corp is −1.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Definity Financial Corp (DFY)?
Revenue at Definity Financial Corp is growing +44.3% versus a year earlier (3y avg +17.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Definity Financial Corp (DFY)?
Earnings per share at Definity Financial Corp are growing +95.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Definity Financial Corp (DFY) carry?
The net debt of Definity Financial Corp is C$809M (fiscal year 2025, ≈ 2.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026