Bank of Nova ScotiaBNS +1.98%70 Return-on-Tangible-Equity is 14.56% as of Apr. 2026, which is 14% below its 10-year median of 17.01. GuruFocus rates BNS with a GF Score™ of 70/100 and a GF Value™ of $60.37 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,523 Banks companies, Bank of Nova Scotia ranks better than 65.79% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Bank of Nova Scotia's annualized net income for the quarter that ended in Apr. 2026 was $7,547 Mil. Bank of Nova Scotia's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $51,828 Mil. Therefore, Bank of Nova Scotia's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 14.56%.
The historical rank and industry rank for Bank of Nova Scotia's Return-on-Tangible-Equity or its related term are showing as below:
BNS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.44 Med: 17.01 Max: 18.28
Current: 13.64
During the past 13 years, Bank of Nova Scotia's highest Return-on-Tangible-Equity was 18.28%. The lowest was 11.44%. And the median was 17.01%.
BNS's Return-on-Tangible-Equity is ranked better than 65.79% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs BNS: 13.64
Bank of Nova Scotia (NYSE:BNS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Bank of Nova Scotia Return-on-Tangible-Equity Related Terms
Bank of Nova Scotia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Bank of Nova Scotia's Return-on-Tangible-Equity 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.
Bank of Nova Scotia Return-on-Tangible-Equity Chart
BNS vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, Bank of Nova Scotia's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Bank of Nova Scotia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bank of Nova Scotia's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.56% mean?
Bank of Nova Scotia (BNS) has a Return-on-Tangible-Equity of 14.56% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Bank of Nova Scotia and its competitors. This is 14% below median its historical median of 17.01. Over the past decade, Bank of Nova Scotia's Return-on-Tangible-Equity has ranged from 11.44 to 18.28. According to the industry distribution chart, Bank of Nova Scotia ranks #521 out of 1523 companies in the Banks industry, placing it in the top 34.2%.
Is Bank of Nova Scotia's Return-on-Tangible-Equity too high?
Bank of Nova Scotia's current Return-on-Tangible-Equity of 14.56% is 14% below median its 10-year median of 17.01. Over the past 10 years, this metric has ranged from a low of 11.44 to a high of 18.28. The Banks industry median Return-on-Tangible-Equity is 11.19. Bank of Nova Scotia's value of 14.56% is 30.1% above this industry median. Based on the distribution chart, Bank of Nova Scotia ranks #521 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Bank of Nova Scotia has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Nova Scotia's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, Bank of Nova Scotia ranks #521 out of 1523 companies for Return-on-Tangible-Equity. This puts Bank of Nova Scotia in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Bank of Nova Scotia's value of 14.56% is 30.1% above this benchmark. Historically, Bank of Nova Scotia's own Return-on-Tangible-Equity has ranged from 11.44 to 18.28 over the past decade. While the company's 10-year median is 17.01 vs. the industry median of 11.19, Bank of Nova Scotia has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bank of Nova Scotia's current Return-on-Tangible-Equity of 14.56% is 30.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Bank of Nova Scotia and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of Nova Scotia's current Return-on-Tangible-Equity is 14.56%, which is 14% below median its own 10-year median of 17.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Nova Scotia stock overvalued right now?
Based on GuruFocus' analysis, Bank of Nova Scotia (BNS) is currently considered Significantly Overvalued. The stock's GF Value™ is $60.37, compared to a current price of $87.09 — trading 44.3% above its estimated fair value. The current Return-on-Tangible-Equity is 14.56%, which is 14% below median its 10-year median of 17.01 and 30.1% above the Banks industry median of 11.19. Bank of Nova Scotia's overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Bank of Nova Scotia (BNS), the current Return-on-Tangible-Equity is 14.56% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bank of Nova Scotia (BNS) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of Nova Scotia stock appears to be overvalued.
The current stock price of $87.09 is trading 44.3% above its estimated GF Value™ of $60.37.
GuruFocus considers Bank of Nova Scotia to be Significantly Overvalued.
Key valuation signals for BNS:
Return-on-Tangible-Equity: 14.56% (14% below median its 10-year median of 17.01)
GF Value™: $60.37 vs. price of $87.09 (44.3% above fair value)
Industry Position: 30.1% above the Banks median (#521 of 1523)
No single metric tells the full story. See the BNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of Nova Scotia is a global financial-services provider with over CAD 1.5 trillion in assets as of the end of April 2026. It has four major business segments: Canadian banking, international banking, global wealth management, and global banking and markets. 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 Latin America.
70GF Score
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