Bank of Nova Scotia Valuation
Is BNS * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
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 * (MX$1018) is trading above our estimate of fair value (MX$775.89)
Significantly Below Fair Value: BNS * is trading above our estimate of fair value.
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.
| What is BNS *'s PE Ratio? | |
|---|---|
| PE Ratio | 13.8x |
| Earnings | CA$7.05b |
| Market Cap | CA$97.66b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | n/a |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | 1.6x |
Price to Earnings Ratio vs Peers
How does BNS *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 45.6x | ||
GFNORTE O Grupo Financiero Banorte. de | 7.3x | 4.1% | Mex$402.5b |
ELEKTRA * Grupo Elektra. de | 162.9x | n/a | Mex$209.5b |
GFINBUR O Grupo Financiero Inbursa. de | 7.8x | 3.8% | Mex$275.9b |
BBAJIO O Banco del Bajío Institución de Banca Múltiple | 4.4x | -6.3% | Mex$48.6b |
BNS * Bank of Nova Scotia | 13.8x | 8.6% | Mex$97.7b |
Price-To-Earnings vs Peers: BNS * is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (45.6x).
Price to Earnings Ratio vs Industry
How does BNS *'s PE Ratio compare vs other companies in the South American Banks Industry?
| 1 Company | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 1 Company | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: BNS * is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the South American Banks industry average (8.7x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 13.8x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BNS *'s Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$1,145.23 0% | 8.7% | Mex$1,315.31 | Mex$949.95 | n/a | 14 |
| Nov ’25 | n/a | Mex$1,035.47 0% | 5.5% | Mex$1,191.34 | Mex$944.35 | n/a | 15 |
| Oct ’25 | n/a | Mex$1,011.90 0% | 5.4% | Mex$1,173.01 | Mex$929.82 | n/a | 15 |
| Sep ’25 | Mex$970.00 | Mex$1,009.25 +4.0% | 3.8% | Mex$1,064.59 | Mex$947.02 | n/a | 15 |
| Aug ’25 | n/a | Mex$907.83 0% | 4.8% | Mex$986.90 | Mex$826.86 | n/a | 15 |
| Jul ’25 | n/a | Mex$931.58 0% | 4.9% | Mex$1,011.58 | Mex$847.54 | n/a | 14 |
| Jun ’25 | Mex$806.00 | Mex$851.41 +5.6% | 4.5% | Mex$919.26 | Mex$770.19 | n/a | 15 |
| May ’25 | n/a | Mex$824.05 0% | 4.6% | Mex$896.26 | Mex$763.04 | n/a | 15 |
| Apr ’25 | Mex$836.85 | Mex$837.89 +0.1% | 3.7% | Mex$899.82 | Mex$788.13 | n/a | 14 |
| Mar ’25 | n/a | Mex$839.42 0% | 2.5% | Mex$878.64 | Mex$803.33 | n/a | 12 |
| Feb ’25 | n/a | Mex$811.27 0% | 4.8% | Mex$879.83 | Mex$729.00 | n/a | 11 |
| Jan ’25 | Mex$817.00 | Mex$816.19 -0.1% | 6.3% | Mex$896.92 | Mex$717.53 | n/a | 12 |
| Dec ’24 | Mex$770.50 | Mex$799.38 +3.7% | 9.8% | Mex$987.68 | Mex$687.75 | n/a | 13 |
| Nov ’24 | n/a | Mex$880.01 0% | 7.1% | Mex$1,012.82 | Mex$783.61 | n/a | 13 |
| Oct ’24 | Mex$810.95 | Mex$870.66 +7.4% | 6.3% | Mex$995.24 | Mex$770.01 | n/a | 13 |
| Sep ’24 | Mex$820.00 | Mex$842.09 +2.7% | 6.1% | Mex$960.40 | Mex$743.06 | Mex$970.00 | 15 |
| Aug ’24 | n/a | Mex$888.90 0% | 4.9% | Mex$990.95 | Mex$805.03 | n/a | 15 |
| Jul ’24 | n/a | Mex$903.03 0% | 5.2% | Mex$1,004.06 | Mex$815.67 | n/a | 16 |
| Jun ’24 | n/a | Mex$920.19 0% | 7.4% | Mex$1,135.28 | Mex$824.37 | Mex$806.00 | 16 |
| May ’24 | n/a | Mex$984.33 0% | 7.2% | Mex$1,171.21 | Mex$877.46 | n/a | 16 |
| Apr ’24 | n/a | Mex$986.11 0% | 6.8% | Mex$1,165.32 | Mex$873.05 | Mex$836.85 | 15 |
| Mar ’24 | Mex$985.00 | Mex$983.12 -0.2% | 7.2% | Mex$1,180.00 | Mex$865.40 | n/a | 15 |
| Feb ’24 | Mex$974.53 | Mex$1,099.79 +12.9% | 7.3% | Mex$1,250.61 | Mex$987.73 | n/a | 15 |
| Jan ’24 | Mex$955.00 | Mex$1,134.52 +18.8% | 7.0% | Mex$1,286.79 | Mex$1,016.31 | Mex$817.00 | 15 |
| Dec ’23 | Mex$1,026.00 | Mex$1,134.76 +10.6% | 6.6% | Mex$1,233.27 | Mex$1,003.83 | Mex$770.50 | 15 |
| Nov ’23 | Mex$962.00 | Mex$1,233.56 +28.2% | 4.9% | Mex$1,329.10 | Mex$1,063.28 | n/a | 15 |
Analyst Forecast: Target price is lower than the current share price.
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