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Bank of Nova Scotia (Bank of Nova Scotia) Intrinsic Value: Projected FCF : $126.55 (As of Apr. 25, 2024)


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What is Bank of Nova Scotia Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-25), Bank of Nova Scotia's Intrinsic Value: Projected FCF is $126.55. The stock price of Bank of Nova Scotia is $46.23. Therefore, Bank of Nova Scotia's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4.

The historical rank and industry rank for Bank of Nova Scotia's Intrinsic Value: Projected FCF or its related term are showing as below:

BNS' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.24   Med: 0.58   Max: 1.01
Current: 0.37

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Bank of Nova Scotia was 1.01. The lowest was 0.24. And the median was 0.58.

BNS's Price-to-Projected-FCF is ranked better than
61.84% of 1216 companies
in the Banks industry
Industry Median: 0.44 vs BNS: 0.37

Bank of Nova Scotia Intrinsic Value: Projected FCF Historical Data

The historical data trend for Bank of Nova Scotia's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bank of Nova Scotia Intrinsic Value: Projected FCF Chart

Bank of Nova Scotia Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 82.38 138.42 103.67 90.40 122.89

Bank of Nova Scotia Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 129.87 111.59 138.32 122.89 128.93

Competitive Comparison of Bank of Nova Scotia's Intrinsic Value: Projected FCF

For the Banks - Diversified subindustry, Bank of Nova Scotia's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bank of Nova Scotia's Price-to-Projected-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Bank of Nova Scotia's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Bank of Nova Scotia's Price-to-Projected-FCF falls into.



Bank of Nova Scotia Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Bank of Nova Scotia's Free Cash Flow(6 year avg) = $11,545.69.

Bank of Nova Scotia's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jan24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*11545.68608+58672.428*0.8)/1221.000
=128.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Bank of Nova Scotia  (NYSE:BNS) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Bank of Nova Scotia's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=46.23/128.46595683721
=0.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Bank of Nova Scotia Intrinsic Value: Projected FCF Related Terms

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Bank of Nova Scotia (Bank of Nova Scotia) Business Description

Industry
Address
1709 Hollis Street, Scotia Plaza, 8th floor, Halifax, NS, CAN, B3J 1W1
Bank of Nova Scotia is a global financial services provider. The bank has five business segments: Canadian banking, international banking, global wealth management, global banking and markets, and other. It offers a range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. The bank's international operations span numerous countries and are more concentrated in Central and South America.

Bank of Nova Scotia (Bank of Nova Scotia) Headlines

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