NYSE
BNS
Last Price
US $86.84
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
The Bank of Nova Scotia cash flow to debt ratio of 1.07% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
The Bank of Nova Scotia's free cash flow has decreased -66.63% from $15.16G last year to $5.06G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
The Bank of Nova Scotia's debt to equity ratio is 3.29, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
The Bank of Nova Scotia's debt has decreased relative to shareholder equity from 3.65 last year to 3.29 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
The Bank of Nova Scotia has a net debt to EBITDA ratio of 36.16x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
The Bank of Nova Scotia earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
The Bank of Nova Scotia's profit margin has decreased (-40.55%) in the last year from 26.31% to 15.64%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
The Bank of Nova Scotia's short-term liabilities of $1.07T exceed its short-term assets of $123.06G, signaling financial risk
Decreasing performance - ROA.
The Bank of Nova Scotia's return on assets of 0.63% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
The Bank of Nova Scotia's return on equity of 11.06%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
The Bank of Nova Scotia's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
The Bank of Nova Scotia had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Bank of Nova Scotia has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Bank of Nova Scotia has a free cash flow yield of 4.79%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
The Bank of Nova Scotia's yearly earnings has increased 0.40% since last year from $7.76G to $7.79G, signaling increasing performance
Increasing performance - Healthy revenue growth.
The Bank of Nova Scotia's yearly revenue has increased 148.20% since last year from $29.48G to $73.18G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 0.61% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
The Bank of Nova Scotia's 3-year revenue CAGR of 32.94% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
The Bank of Nova Scotia had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The Bank of Nova Scotia had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The Bank of Nova Scotia has insufficient data to evaluate this check.
Undervalued - Earnings yield.
The Bank of Nova Scotia has an earnings yield of 9.01%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
The Bank of Nova Scotia is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Overvalued - EV/EBITDA.
The Bank of Nova Scotia has an EV/EBITDA ratio of 31.14x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Undervalued - PEG ratio value.
The Bank of Nova Scotia has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
The Bank of Nova Scotia has a price-to-book ratio of 1.73x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The Bank of Nova Scotia has a price-to-sales ratio of 2.46x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
11.06%
Return on equity
ROIC: 0.61%
Valuation History
16.8X
Price to Earnings
EV/EBITDA: 31.1X
Cash flow
Profit margin
4.54%
(FY vs FY)
Cash flow Y/Y
-38.15%
(FY vs FY)
Fair Value
Market $86.84
416.26%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.