-0.95%
-3.67%
3.72%
15.34%
18.28%
-18.79%
2.88%

Company Description

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally.It operates in four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses, including automotive financing solutions to dealers and their customers.


It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds.In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers.Further, it provides online, mobile, and telephone banking services.


The company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support center internationally.The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

Market Data

Last Price 74.36
Change Percentage -0.95%
Open 74.94
Previous Close 75.07
Market Cap ( Millions) 91431
Volume 3770828
Year High 80.14
Year Low 60.68
M A 50 76.88
M A 200 69.51

Financial Ratios

FCF Yield 16.20%
Dividend Yield 5.70%
ROE 9.64%
Debt / Equity 365.03%
Net Debt / EBIDTA 7621.92%
Price To Book 1.11
Price Earnings Ratio 11.79
Price To FCF 6.17
Price To sales 2.08
EV / EBITDA 105.65

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Canadian Banking

Expected Growth : 7 %

What the company do ?

The Bank of Nova Scotia, one of Canada's largest banks, provides personal and commercial banking services, including credit cards, loans, and investment products.

Why we expect these perspectives ?

The Bank of Nova Scotia's 7% growth in Canadian Banking is driven by a strong economy, rising interest rates, and increased lending activities. Additionally, the bank's diversified revenue streams, including personal and commercial banking, wealth management, and credit cards, contribute to its growth. Furthermore, strategic acquisitions and investments in digital transformation also support its expansion.

Segment nΒ°2 -> International Banking

Expected Growth : 6 %

What the company do ?

International Banking from The Bank of Nova Scotia provides cross-border financial solutions for individuals and businesses, facilitating global trade and investment.

Why we expect these perspectives ?

The 6% growth in International Banking at The Bank of Nova Scotia is driven by increasing cross-border trade, strategic expansion in Latin America and the Caribbean, growing demand for trade finance and cash management services, and a strong presence in the Pacific Alliance markets.

Segment nΒ°3 -> Global Banking and Markets

Expected Growth : 9 %

What the company do ?

Global Banking and Markets is the wholesale banking division of The Bank of Nova Scotia, providing corporate banking, markets, and investment banking services to corporate, government, and institutional clients.

Why we expect these perspectives ?

The 9% growth in Global Banking and Markets at The Bank of Nova Scotia is driven by strong capital markets activity, increased trading volumes, and a robust pipeline of corporate and investment banking deals. Additionally, the segment has benefited from strategic acquisitions, a favorable interest rate environment, and a growing presence in key international markets.

Segment nΒ°4 -> Global Wealth Management

Expected Growth : 8 %

What the company do ?

Global Wealth Management from The Bank of Nova Scotia offers investment, trust, and private banking services to high net worth individuals and families.

Why we expect these perspectives ?

The 8% growth in Global Wealth Management at The Bank of Nova Scotia is driven by increasing demand for investment products, strategic acquisitions, and expansion into high-growth markets. Additionally, the bank's digital transformation efforts, robust risk management, and strong brand reputation contribute to its growth momentum.

Segment nΒ°5 -> Other

Expected Growth : 5 %

What the company do ?

The Other from The Bank of Nova Scotia refers to the bank's non-interest income, including fees, commissions, and other revenue sources beyond traditional lending.

Why we expect these perspectives ?

The Bank of Nova Scotia's 'Other' segment growth is driven by increasing wealth management fees, strong insurance sales, and growing transactional revenues. Additionally, the bank's focus on digital transformation and investments in technology have improved operational efficiency, further contributing to growth.

The Bank Of Nova Scotia Products

Product Range What is it ?
Personal Banking Personal banking services for individuals, including chequing and savings accounts, credit cards, loans, and investment products.
Credit Cards A range of credit cards with different features, benefits, and rewards programs.
Mortgages Mortgage solutions for homebuyers, including fixed and variable rate mortgages, and mortgage insurance.
Investments A range of investment products, including mutual funds, exchange-traded funds, and portfolio management services.
Business Banking Business banking services for small businesses and commercial clients, including cash management, credit, and trade finance solutions.
Commercial Banking Commercial banking services for large corporations, including cash management, credit, and trade finance solutions.
Wealth Management Wealth management services, including investment advice, portfolio management, and estate planning.
International Banking International banking services for individuals and businesses, including cross-border banking, trade finance, and cash management solutions.

The Bank of Nova Scotia's Porter Forces

The threat of substitutes for The Bank of Nova Scotia is medium due to the presence of alternative financial institutions and digital payment systems. However, the bank's strong brand and customer loyalty mitigate this threat.

The bargaining power of customers is low due to the bank's large customer base and diversified product offerings, making it difficult for individual customers to negotiate better terms.

The bargaining power of suppliers is low due to the bank's significant scale and negotiating power, allowing it to dictate terms to its suppliers.

The threat of new entrants is low due to the significant regulatory barriers and capital requirements to enter the banking industry, making it difficult for new players to enter the market.

The intensity of rivalry is high due to the presence of several established banks and financial institutions in the market, leading to intense competition for customers and market share.

Capital Structure

Value
Debt Weight 80.31%
Debt Cost 8.85%
Equity Weight 19.69%
Equity Cost 8.85%
WACC 8.85%
Leverage 407.93%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CM.TO Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. …
JPM JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and …
NA.TO National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth …
C Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, …
BAC Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
74.36$
Current Price
74.36$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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