Discover valuable insights on National Bank of Canada stock (TSX:NA) in this article. Learn how to effectively guide your clients and assess market potential
Major financial institutions like banks are essential businesses in any economy. As such, it's not surprising that their stocks are among the most stable in the market.
Bank stocks like those of the Big Five banks are some of the most reliable and favoured investments in Canada. But what about other bank stocks apart from the Big Five? In this edition of Wealth Professional's investor resources series, we're going to unpack the National Bank of Canada stock.
A look at National Bank of Canada (TSX:NA) stock
Here's a look at the National Bank of Canada's stock indicators:
1. Market cap
As of this writing, the National Bank of Canada stock has a market capitalization of $69.27 billion, only a slight increase from $69.18 billion in 2025.
Review this table for easier comparison:
| Year | Market cap | Change |
|---|---|---|
| 2026 | $69.27 billion | 0.13% |
| 2025 | $69.18 billion | 54.44% |
| 2024 | $44.79 billion | 30.88% |
| 2023 | $34.22 billion | 10.95% |
| 2022 | $30.84 billion | -5.34% |
| 2021 | $32.58 billion | 35.39% |
| 2020 | $24.07 billion | -0.07% |
From 2020 to 2021, the market cap rose from $24.07 billion to $32.58 billion, a gain of 35.39 percent. In 2022, it slipped to $30.84 billion, a 5.34 percent decline. That drop likely reflected uncertainty surrounding central bank policy, rising rates, and a broader market repricing of financial stocks.
The recovery that followed stands out. Market cap climbed to $34.22 billion in 2023 and then to $44.79 billion in 2024. By 2025, it surged to $69.18 billion, a jump of 54.44 percent. That level of growth shows investor confidence returned quickly, driven by stronger results, stable credit performance, and improving sentiment toward financial stocks.
For your clients, this track record points to a bank that has moved through periods of stress and resumed growth, but one where recent price strength may already reflect positive expectations, leaving less room for further surprise.
2. P/B value ratio
National Bank of Canada trades at a price‑to‑book (P/B) ratio of 2.04. In simple terms, investors are paying a little more than twice the bank's book value for each share.
That said, banks with strong profitability, stable credit quality, and consistent dividend records often command P/B ratios above one. A P/B of 2.04 shows that the market views National Bank of Canada favorably, but it stops short of the stretched valuations you see in premium names trading at three times book or higher.
Still, it sits below the common upper threshold of 3.0 that many analysts use when screening for quality names in the sector. For your clients, this ratio offers a middle path: not cheap by historical standards, but not frothy either.
3. P/E ratio
National Bank of Canada's price‑to‑earnings (P/E) ratio stands at 16.5 on a trailing twelve‑month basis as of March 2026. This means that investors are paying $16.50 for every dollar of earnings the bank has generated over the past year.
For context, many developed‑market equities trade in the 20 to 25 range, depending on sector and interest rate conditions. A P/E of 16.5 sits below that midpoint, which can signal either value or tempered optimism about growth.
For your discussions with clients, you can frame this as a valuation that reflects both quality and caution. The market seems willing to pay a moderate premium for National Bank of Canada's earnings track record, but it has not pushed the multiple to levels that assume aggressive profit acceleration.
That can appeal to investors who want exposure to the Canadian banking sector without feeling that they are overpaying for growth that is uncertain.
Still, P/E ratios should always be read together with earnings stability and outlook. A modest P/E can become expensive if earnings contract, while a higher multiple can look reasonable if profits are expected to grow steadily.
How much is the dividend for the National Bank of Canada?
National Bank of Canada offers a trailing twelve‑month dividend yield of 2.05 percent. Over the last five years, its average has been 3.76 percent. This gap is important when you talk to income‑focused clients.
A lower current yield relative to the five‑year average often signals that the share price has risen faster than the dividend. That fits with the strong run National Bank of Canada has enjoyed in recent years, particularly the 54 percent jump in market cap from 2024 to 2025.
History of National Bank of Canada
As with most of the big banks of Canada, National Bank of Canada's origins date back hundreds of years. In 1859, French-speaking businessmen in Ontario and Quebec City founded the Banque Nationale to cater to mostly to French-Canadian communities.
Some years after, Banque Nationale had terrible losses during the banking crisis sparked by the financial panic of 1873 and of 1884. However, the bank was able to weather these crises and make a recovery.
But in the 1930s, Banque Nationale again came under severe financial stress due to the Great Depression. This time, a merger was arranged with Banque d'Hochelaga.
The then-merged bank was renamed as "Banque Canadienne Nationale" (BCN), which in English translates to "Canadian National Bank".
From BCN to the National Bank of Canada
In November 1979, BCN and its rival Provincial Bank of Canada agreed to a merger. The two banks decided to rebrand the new resulting bank into "National Bank of Canada".
In the 1980s, the newly founded National Bank of Canada continued to grow via several acquisitions, including brokerage firm Lévesque Beaubien and Geoffrey T. Clarkson & Co., a Montreal-based financial services firm.
Headquartered in Montréal, National Bank of Canada is the sixth-largest commercial bank in the country. It operates branches across most Canadian provinces, with a concentrated network in Québec, Ontario, and New Brunswick.
Within Québec, National Bank holds the position of the largest bank and ranks as the second-largest financial institution in the province, following the influential Desjardins Group.
What is National Bank of Canada's stock split?
The National Bank of Canada has had an instance of a stock split in its long history. It was done on February 14, 2014 to make National Bank of Canada stock more accessible to investors.
National Bank's stock split was a 2-for-1, effectively doubling each share of stock already in the hands of investors.
Is National Bank of Canada a good stock to buy?
If your clients are considering buying National Bank of Canada stock, tell them about the bank stock's performance. This will help them realize if it truly fits with their risk tolerance, time horizon, and portfolio goals.
This bank stock does offer steady dividends and long-term growth, but like any investment, it comes with pitfalls. As such, it's vital for your clients to consider these factors, too:
Why is National Bank of Canada stock falling?
National Bank of Canada's recent pullback looks more like a pause after a strong run than a collapse in confidence. The bank stock is down about seven percent from recent highs. That follows a surge that took the market cap from $44.79 billion in 2024 to $69.18 billion in 2025.
After that kind of performance, short-term weakness often reflects investors locking in profits and reassessing how much future growth is already reflected in the share price. There is no evidence of serious fundamental pressure, such as rising loan defaults or earnings misses.
How safe is National Bank of Canada?
Despite these changes, this bank stock is widely regarded as a safe and stable financial institution. It holds positive credit ratings from major agencies like S&P, Moody's and DBRS Morningstar. All these ratings suggest a very high likelihood of meeting financial obligations.
While external factors like trade tensions can pose risks, the National Bank of Canada's financial position and prudent management help mitigate potential volatility. In fact, the bank has invested heavily to ensure risk continuity and management.
Apart from being less exposed to mortgage renewals, their stock has a low P/E ratio with a good dividend yield. The National Bank of Canada takes a conservative approach to commercial real estate lending, while one of its most tenured members was promoted to chief risk officer.
Overall, National Bank of Canada stock can be a safe and reliable long-term investment for your clients based on their performance over the years. Watch the video below to find out why the banking sector remains a favorite for Canadian investors:
Check out our National Bank Investments guide to discover more about this banking giant.
Should your clients invest in National Bank of Canada stock?
When it comes to deciding whether National Bank of Canada stock is worth one's time and money, your clients should first determine their investment goals, risk profile, and time horizon.
As discussed above, the National Bank of Canada has performed well despite some fluctuations, making it a viable option for your clients. It also ranks among the best Canadian bank stocks to invest in.
If your clients are looking for long-term growth and stability, this bank stock definitely presents a compelling choice.
Check out our Investor Resources page for other overviews of bank stocks that your clients can invest in.
