The Bank of Nova Scotia

TSX:BNS Stock Report

Market Cap: CA$94.8b

Bank of Nova Scotia Valuation

Is BNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BNS (CA$77.09) is trading below our estimate of fair value (CA$103.63)

Significantly Below Fair Value: BNS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BNS?

Key metric: As BNS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BNS. This is calculated by dividing BNS's market cap by their current earnings.
What is BNS's PE Ratio?
PE Ratio13x
EarningsCA$7.29b
Market CapCA$94.79b

Price to Earnings Ratio vs Peers

How does BNS's PE Ratio compare to its peers?

The above table shows the PE ratio for BNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
BMO Bank of Montreal
14.6x8.1%CA$101.3b
CM Canadian Imperial Bank of Commerce
12.7x6.5%CA$87.2b
TD Toronto-Dominion Bank
15.8x14.5%CA$131.3b
NA National Bank of Canada
12.6x-1.0%CA$46.0b
BNS Bank of Nova Scotia
13x8.6%CA$94.8b

Price-To-Earnings vs Peers: BNS is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

How does BNS's PE Ratio compare vs other companies in the North American Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BNS 13.0xIndustry Avg. 12.5xNo. of Companies84PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BNS is expensive based on its Price-To-Earnings Ratio (13x) compared to the North American Banks industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is BNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: BNS is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BNS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$77.09
CA$80.58
+4.5%
6.2%CA$90.00CA$71.00n/a14
Dec ’25CA$79.85
CA$79.58
-0.3%
8.0%CA$90.00CA$65.00n/a14
Nov ’25CA$72.44
CA$71.27
-1.6%
5.5%CA$82.00CA$65.00n/a15
Oct ’25CA$73.53
CA$70.74
-3.8%
5.4%CA$82.00CA$65.00n/a15
Sep ’25CA$67.27
CA$69.27
+3.0%
3.8%CA$73.07CA$65.00n/a15
Aug ’25CA$63.82
CA$68.07
+6.7%
4.8%CA$74.00CA$62.00n/a15
Jul ’25CA$62.58
CA$68.15
+8.9%
4.9%CA$74.00CA$62.00n/a14
Jun ’25CA$64.52
CA$68.54
+6.2%
4.5%CA$74.00CA$62.00n/a15
May ’25CA$63.68
CA$68.04
+6.8%
4.6%CA$74.00CA$63.00n/a15
Apr ’25CA$68.35
CA$68.04
-0.5%
3.7%CA$73.07CA$64.00n/a14
Mar ’25CA$65.98
CA$66.88
+1.4%
2.5%CA$70.00CA$64.00n/a12
Feb ’25CA$63.43
CA$64.55
+1.8%
4.8%CA$70.00CA$58.00n/a11
Jan ’25CA$64.50
CA$63.70
-1.2%
6.3%CA$70.00CA$56.00n/a12
Dec ’24CA$61.00
CA$62.77
+2.9%
9.8%CA$77.55CA$54.00CA$79.8513
Nov ’24CA$56.50
CA$67.38
+19.3%
7.1%CA$77.55CA$60.00CA$72.4413
Oct ’24CA$60.88
CA$67.84
+11.4%
6.3%CA$77.55CA$60.00CA$73.5313
Sep ’24CA$65.48
CA$68.00
+3.8%
6.1%CA$77.55CA$60.00CA$67.2715
Aug ’24CA$65.54
CA$69.56
+6.1%
4.9%CA$77.55CA$63.00CA$63.8215
Jul ’24CA$66.28
CA$69.75
+5.2%
5.2%CA$77.55CA$63.00CA$62.5816
Jun ’24CA$65.57
CA$70.32
+7.2%
7.4%CA$86.76CA$63.00CA$64.5216
May ’24CA$67.48
CA$72.92
+8.1%
7.2%CA$86.76CA$65.00CA$63.6816
Apr ’24CA$68.07
CA$73.42
+7.9%
6.8%CA$86.76CA$65.00CA$68.3515
Mar ’24CA$68.44
CA$73.84
+7.9%
7.2%CA$88.63CA$65.00CA$65.9815
Feb ’24CA$72.35
CA$77.94
+7.7%
7.3%CA$88.63CA$70.00CA$63.4315
Jan ’24CA$66.34
CA$78.14
+17.8%
7.0%CA$88.63CA$70.00CA$64.5015
Dec ’23CA$70.16
CA$79.13
+12.8%
6.6%CA$86.00CA$70.00CA$61.0015

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 08:42
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/31
Annual Earnings2024/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

The Bank of Nova Scotia is covered by 32 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
John AikenBarclays
Brian MortonBarclays