BNS

Bank of Nova Scotia

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

05/27/26

Business Summary

Bank of Nova Scotia is a diversified bank generating cash through spread income on loans and deposits, fee income from wealth management and capital markets, and cross-border banking operations. Its moat is built on scale, regulatory licensing, entrenched customer relationships, and low-cost deposit funding that competitors cannot easily replicate. The balance sheet structure allows it to recycle deposits into higher-yielding assets, driving net interest income while layering fee-based services for incremental margin. Over time, durable client relationships and institutional trust create switching costs that stabilize revenue even in cyclical downturns.

VALUATION

P/E

15

Market Cap ($M USD)

$90,001

Forward P/E

8

PEG

0.9

PRICE TO SALES

3.3

PRICE TO BOOK

1.6

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

4.30%

Annual Payout

$3.18

Payout Ratio

89.70%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

4.10%

Financial Health & Profitability

Earnings Per Share

$4.86

Next Year EPS Growth Estimate

$9.16

Next Year Revenue Growth Estimate

4.60%

Return on Equity (ROE)

9.60%

Operating Margin

44.80%

Debt-to-Equity

3.7

Piotroski F-Score

6

Altman Z-Score

-

Return on Invested Capital (ROIC)

10.40%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 15x earnings and just 8x forward earnings, BNS is priced like a no-growth bank despite a PEG Forward of 0.9 implying growth is available at a reasonable price. The compression from 15 to 8 on a forward basis suggests either earnings are expected to inflect materially or the market is discounting risk excessively; combined with a 3.7 TTM yield and a 4 Dividend 5-Year Avg (%), investors are being paid to wait. However, the absence of an Altman Z-Score and EPS data limits balance sheet distress visibility, and a modest 4.60% ROE tempers enthusiasm. This is not a pristine compounder, but at 8x forward earnings with institutional ownership at $78.28, it screens as a potentially mispriced income-oriented value play rather than a growth darling.

AI Exposure / Tech Reliance

As a diversified bank in Financial Services, BNS operates in a sector rapidly integrating AI into underwriting, fraud detection, and cost optimization. With a 9.60% operating margin, incremental efficiency gains from automation could meaningfully expand profitability without requiring outsized revenue growth. The diversified banking model provides data scale, which is the raw fuel for AI-driven risk pricing and cross-selling.

The Bull Case

A GARP or deep value investor buys this because the valuation is doing the heavy lifting: a Forward P/E of 8 paired with a PEG Forward of 0.9 signals growth at a discount. ROIC at 10.40% exceeds the 4.60% ROE, indicating capital is being deployed with reasonable efficiency relative to equity returns, and a Piotroski F-Score of 6 reflects acceptable financial stability rather than distress. The 9.60% operating margin, 3.7 yield, and Dividend Per Share USD of 4.30% create a tangible total return floor, while $78.28 institutional ownership suggests smart money is already committed. Add a Price/Book of 1.6 in a diversified bank and you’re not paying an excessive premium for franchise value.

The Bear Case

The red flags are not subtle: a 4.60% ROE is weak for a bank, especially with Debt/Equity at 44.80%, implying leverage is not translating into strong shareholder returns. A Price/Sales of 3.3 in a low-margin, cyclical industry leaves little room for macro disappointment, and Short % of Float at 4.10% shows a non-trivial cohort betting against it. The lack of reported EPS and Altman Z-Score obscures earnings quality and solvency signals, while a Payout Ratio of $3.18 relative to a 3.7 yield raises questions about capital allocation clarity. If credit conditions tighten, this balance sheet could feel heavier than the 8x forward multiple implies.

Market Sentiment & Smart Money

Short Interest %

0.40%

Analyst Consensus

2.92

Average Analyst Price Target

$78.28

Institutional Ownership %

52.00%

1-Year Beta

0.53

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

93.20%%

Distance to 52-Week Low

159.70%%