The outlook for Canadian banks in 2025 [Video]

* Canada’s big banks have reported their last quarter of the year. And our next guest says that when you take a look at the valuation, for the most part, they are at or over what might be fair market value. Mario Mendonca is managing director with TD Cowen. He joins us now to talk about some of the analysis.

* Mario, good to see you for the last interview of the year. I want to start with maybe what I just finished with when I was introducing you. You talk about the valuations perhaps being vulnerable at this point. How come?

* Over many years, we’ve watched these banks. I’ve come up with a few valuation approaches. Some of them are extremely simple. Just your forward PE. Others are a little more involved.

* They include an interest rate element of the valuation. But rather than going into the …