The Bank of Nova Scotia

NYSE:BNS Stock Report

Market Cap: US$69.7b

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 ($56.22) is trading below our estimate of fair value ($99.71)

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 Ratio13.8x
EarningsCA$7.05b
Market CapCA$97.41b

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 Average17x
PNC PNC Financial Services Group
17.3x12.9%US$80.9b
USB U.S. Bancorp
15.7x11.6%US$79.2b
C Citigroup
19.6x30.4%US$130.3b
FITB Fifth Third Bancorp
15.3x8.1%US$31.1b
BNS Bank of Nova Scotia
13.8x8.6%US$97.4b

Price-To-Earnings vs Peers: BNS is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
BNS 13.8xIndustry Avg. 12.9xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BNS is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the US Banks industry average (12.8x).

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 Ratio13.8x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: BNS is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

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
CurrentUS$56.22
US$56.10
-0.2%
8.7%US$64.43US$46.53n/a14
Nov ’25US$51.90
US$51.07
-1.6%
5.5%US$58.75US$46.57n/a15
Oct ’25US$54.49
US$52.15
-4.3%
5.4%US$60.46US$47.92n/a15
Sep ’25US$49.88
US$51.39
+3.0%
3.8%US$54.21US$48.22n/a15
Aug ’25US$46.01
US$49.92
+8.5%
4.8%US$54.27US$45.47n/a15
Jul ’25US$45.46
US$49.65
+9.2%
4.9%US$53.91US$45.17n/a14
Jun ’25US$47.33
US$50.09
+5.8%
4.5%US$54.09US$45.32n/a15
May ’25US$46.28
US$50.06
+8.2%
4.6%US$54.45US$46.36n/a15
Apr ’25US$50.36
US$49.99
-0.7%
3.7%US$53.68US$47.02n/a14
Mar ’25US$48.66
US$49.32
+1.4%
2.5%US$51.63US$47.20n/a12
Feb ’25US$47.39
US$48.06
+1.4%
4.8%US$52.12US$43.18n/a11
Jan ’25US$48.69
US$48.04
-1.3%
6.3%US$52.80US$42.24n/a12
Dec ’24US$45.21
US$46.17
+2.1%
9.8%US$57.05US$39.72n/a13
Nov ’24US$40.76
US$48.74
+19.6%
7.1%US$56.10US$43.40US$51.9013
Oct ’24US$45.59
US$49.95
+9.6%
6.3%US$57.10US$44.17US$54.4913
Sep ’24US$48.14
US$50.24
+4.4%
6.1%US$57.30US$44.34US$49.8815
Aug ’24US$49.31
US$52.82
+7.1%
4.9%US$58.88US$47.84US$46.0115
Jul ’24US$50.04
US$52.76
+5.4%
5.2%US$58.67US$47.66US$45.4616
Jun ’24US$48.76
US$51.58
+5.8%
7.4%US$63.63US$46.21US$47.3316
May ’24US$49.81
US$54.67
+9.8%
7.2%US$65.05US$48.74US$46.2816
Apr ’24US$50.36
US$53.76
+6.7%
6.8%US$63.52US$47.59US$50.3615
Mar ’24US$50.33
US$54.31
+7.9%
7.2%US$65.18US$47.80US$48.6615
Feb ’24US$54.44
US$58.25
+7.0%
7.3%US$66.23US$52.31US$47.3915
Jan ’24US$48.98
US$57.39
+17.2%
7.0%US$65.09US$51.41US$48.6915
Dec ’23US$52.23
US$58.83
+12.6%
6.6%US$63.93US$52.04US$45.2115
Nov ’23US$48.41
US$61.82
+27.7%
4.9%US$66.61US$53.29US$40.7615

Analyst Forecast: Target price is lower than the current share price.

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