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Bank of Nova Scotia (LTS:0UKI) Owner Earnings per Share (TTM) : 10.42 (As of Oct. 2024)


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What is Bank of Nova Scotia Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Bank of Nova Scotia's Owner Earnings per Share (TTM) ended in Oct. 2024 was C$10.42. It's Price-to-Owner-Earnings ratio for today is 7.59.


The historical rank and industry rank for Bank of Nova Scotia's Owner Earnings per Share (TTM) or its related term are showing as below:

LTS:0UKI' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 0.72   Med: 4.12   Max: 89.21
Current: 7.59


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Bank of Nova Scotia was 89.21. The lowest was 0.72. And the median was 4.12.


LTS:0UKI's Price-to-Owner-Earnings is ranked better than
60.74% of 1001 companies
in the Banks industry
Industry Median: 9.3 vs LTS:0UKI: 7.59

Bank of Nova Scotia's Earnings per Share (Diluted) for the three months ended in Oct. 2024 was C$1.21. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was C$5.87. It's PE Ratio (TTM) ratio for today is 13.48.

Bank of Nova Scotia's EPS without NRI for the three months ended in Oct. 2024 was C$1.51. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was C$6.41. It's PE Ratio without NRI ratio for today is 12.34.


Bank of Nova Scotia Owner Earnings per Share (TTM) Historical Data

The historical data trend for Bank of Nova Scotia's Owner Earnings per Share (TTM) 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 Owner Earnings per Share (TTM) Chart

Bank of Nova Scotia Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -9.82 14.11 21.78 10.38

Bank of Nova Scotia Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Owner Earnings per Share (TTM) 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 21.78 10.46 20.61 7.60 10.38

Competitive Comparison of Bank of Nova Scotia's Owner Earnings per Share (TTM)

For the Banks - Diversified subindustry, Bank of Nova Scotia's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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-Owner-Earnings Distribution in the Banks Industry

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

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



Bank of Nova Scotia Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Bank of Nova Scotia's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 7,758
Depreciation, Depletion and Amortization 1,760
Change In Deferred Tax 2,032
5Y Average of Maintenance Capital Expenditure 511
Change In Working Capital 1,889
Shares Outstanding (Diluted Average) 1,244

1. Start with "Net Income" from income statement. Bank of Nova Scotia's Net Income for the trailing twelve months (TTM) ended in Oct. 2024 was C$7,758 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Bank of Nova Scotia's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Oct. 2024 was C$1,760 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Bank of Nova Scotia's Change In Deferred Tax for the trailing twelve months (TTM) ended in Oct. 2024 was C$2,032 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = C$511 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Bank of Nova Scotia's 5-Year Average Maintenance Capital Expenditure = C$511 Mil

5. "Change In Working Capital" is from cashflow statement. Bank of Nova Scotia's Change In Working Capital for the trailing twelve months (TTM) ended in Oct. 2024 was C$1,889 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Bank of Nova Scotia's Shares Outstanding (Diluted Average) for the months ended in Oct. 2024 was 1244.000 Mil.

Bank of Nova Scotia's Onwer Earnings Per Share for Oct. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 7758 +1760+2032
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-511.09214335209+1889)/1244.000
=10.42

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=79.12/10.42
=7.59

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Bank of Nova Scotia Owner Earnings per Share (TTM) Related Terms

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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 Headlines

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