(BNS) Bank of Nova Scotia - Overview
Sector: Financial Services | Industry: Banks - Diversified | Exchange: NYSE (USA) | Market Cap: 94.919m USD | Total Return: 60.5% in 12m
Avg Turnover: 123M
EPS Trend: -8.6%
Qual. Beats: 1
Rev. Trend: 92.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
The Bank of Nova Scotia (BNS), founded in 1832 and headquartered in Toronto, is a major Canadian financial institution operating through four primary segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The firm provides a comprehensive range of retail, commercial, and institutional services, including deposit accounts, mortgages, asset management, and investment banking across the Americas and select international markets.
As a member of Canada’s Big Five banks, the company operates within a highly regulated domestic oligopoly characterized by significant barriers to entry and stable capital requirements. Its business model is distinguished by a heavy geographic concentration in the Pacific Alliance countries-Mexico, Peru, Chile, and Colombia-which offers exposure to higher-growth emerging markets compared to its domestic peers.
For a detailed breakdown of the banks valuation and historical performance, consider reviewing the additional metrics available at ValueRay. Given the cyclical nature of the banking sector, monitoring interest rate spreads and regional credit quality remains essential for evaluating the firms long-term stability.
- Exposure to Latin American emerging markets drives higher growth and credit risk
- Canadian mortgage portfolio performance hinges on domestic interest rate environment
- Net interest margin expansion depends on central bank monetary policy shifts
- Operational efficiency improvements through digital transformation reduce non-interest expense ratios
- Global Banking and Markets revenue fluctuates with capital market volatility and volume
| Net Income: 8.93b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -1.81 > 1.0 |
| NWC/Revenue: -288.1% < 20% (prev -1.11k%; Δ 824.5% < -1%) |
| CFO/TA -0.01 > 3% & CFO -8.40b > Net Income 8.93b |
| Net Debt (250b) to EBITDA (13.4b): 18.73 < 3 |
| Current Ratio: 0.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.25b) vs 12m ago -0.40% < -2% |
| Gross Margin: 45.66% > 18% (prev 0.40%; Δ 4.53k% > 0.5%) |
| Asset Turnover: 4.89% > 50% (prev 5.27%; Δ -0.38% > 0%) |
| Interest Coverage Ratio: 0.35 > 6 (EBITDA TTM 13.4b / Interest Expense TTM 34.0b) |
| A: -0.14 (Total Current Assets 8.75b - Total Current Liabilities 214b) / Total Assets 1478b |
| B: 0.04 (Retained Earnings 59.4b / Total Assets 1478b) |
| C: 0.01 (EBIT TTM 11.8b / Avg Total Assets 1459b) |
| D: 0.06 (Book Value of Equity 77.8b / Total Liabilities 1389b) |
| Altman-Z'' = -0.67 = B |
| DSRI: 1.21 (Receivables 15.0b/13.1b, Revenue 71.3b/75.8b) |
| GMI: 0.87 (GM 45.66% / 39.57%) |
| AQI: 1.15 (AQ_t 0.99 / AQ_t-1 0.86) |
| SGI: 0.94 (Revenue 71.3b / 75.8b) |
| TATA: 0.01 (NI 8.93b - CFO -8.40b) / TA 1478b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 79.78 with a total of 1,113,974 shares traded.
Over the past week, the price has changed by +3.50%,
over one month by +6.43%,
over three months by +6.35% and
over the past year by +60.53%.
Bank of Nova Scotia has received a consensus analysts rating of 3.47. Therefore, it is recommended to hold BNS.
- StrongBuy: 4
- Buy: 0
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 76.3 | -4.3% |
P/E Trailing = 15.6667
P/E Forward = 13.0719
P/S = 2.8545
P/B = 1.6769
P/EG = 1.0957
Revenue TTM = 71.3b CAD
EBIT TTM = 11.8b CAD
EBITDA TTM = 13.4b CAD
Long Term Debt = 196b CAD (from longTermDebt, last quarter)
Short Term Debt = 214b CAD (from shortTermDebt, last quarter)
Debt = 259b CAD (from shortLongTermDebtTotal, last quarter) + Leases 2.96b
Net Debt = 250b CAD (calculated: Debt 259b - CCE 8.75b)
Enterprise Value = 381b CAD (130b + Debt 259b - CCE 8.75b)
Interest Coverage Ratio = 0.35 (Ebit TTM 11.8b / Interest Expense TTM 34.0b)
EV/FCF = -42.47x (Enterprise Value 381b / FCF TTM -8.97b)
FCF Yield = -2.35% (FCF TTM -8.97b / Enterprise Value 381b)
FCF Margin = -12.57% (FCF TTM -8.97b / Revenue TTM 71.3b)
Net Margin = 12.52% (Net Income TTM 8.93b / Revenue TTM 71.3b)
Gross Margin = 45.66% ((Revenue TTM 71.3b - Cost of Revenue TTM 38.8b) / Revenue TTM)
Gross Margin QoQ = 48.10% (prev 46.50%)
Tobins Q-Ratio = 0.26 (Enterprise Value 381b / Total Assets 1478b)
Interest Expense / Debt = 13.14% (Interest Expense 34.0b / Debt 259b)
Taxrate = 29.20% (872.0m / 2.99b)
NOPAT = 8.34b (EBIT 11.8b * (1 - 29.20%))
Current Ratio = 0.04 (Total Current Assets 8.75b / Total Current Liabilities 214b)
Debt / Equity = 2.95 (Debt 259b / totalStockholderEquity, last quarter 87.7b)
Debt / EBITDA = 18.73 (Net Debt 250b / EBITDA 13.4b)
Debt / FCF = -27.91 (negative FCF - burning cash) (Net Debt 250b / FCF TTM -8.97b)
Total Stockholder Equity = 85.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.61% (Net Income 8.93b / Total Assets 1478b)
RoE = 10.41% (Net Income TTM 8.93b / Total Stockholder Equity 85.8b)
RoCE = 4.18% (EBIT 11.8b / Capital Employed (Equity 85.8b + L.T.Debt 196b))
RoIC = 0.56% (NOPAT 8.34b / Invested Capital 1478b)
WACC = 8.87% (E(130b)/V(390b) * Re(8.01%) + D(259b)/V(390b) * Rd(13.14%) * (1-Tc(0.29)))
Discount Rate = 8.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 62.86 | Cagr: 1.24%
[DCF] Fair Price = unknown (Cash Flow -8.97b)
EPS Correlation: -8.58 | EPS CAGR: -0.68% | SUE: 1.54 | # QB: 1
Revenue Correlation: 92.40 | Revenue CAGR: 49.48% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-07-31): EPS=2.09 | Chg30d=+0.12% | Revisions=-20% | Analysts=9
EPS current Year (2026-10-31): EPS=8.18 | Chg30d=-0.08% | Revisions=-14% | GrowthEPS=+15.4% | GrowthRev=+4.5%
EPS next Year (2027-10-31): EPS=9.17 | Chg30d=+0.01% | Revisions=+14% | GrowthEPS=+12.0% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: -20%