BNS

The Bank of Nova Scotia

Fundamental data last updated:June 7, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

CA

Next Earnings Date

08/25/2026

Business Summary

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.

 


VALUATION

P/E

10.38

Market Cap ($M USD)

$98.77B

Forward P/E

7.94

PEG

0.26

PRICE TO SALES

2.26

PRICE TO BOOK

1.59

EV / EBITDA

30.24

5-Year Average P/E

Free Cash Flow Yield

9.90%

DCF Value

$289.02

Graham Number

$111.25

Price to FCF

10.10

EV to FCF

30.43

Earnings Yield

6.91%

FCF Yield

9.90%

DIVIDEND

Yield

3.92%

Annual Payout

$4.40

Payout Ratio

62.27%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.76

Next Year EPS Growth Estimate

$10.15

Next Year Revenue Growth Estimate

$4.43T

Return on Equity (ROE)

11.06%

FREE CASH FLOW

Operating Margin

20.37%

Debt-to-Equity

5.80

Piotroski F-Score

6

Altman Z-Score

0.00

Return on Invested Capital (ROIC)

0.98%

Current Ratio

0.04

Quick Ratio

0.04

Net Debt to EBITDA

20.20

Interest Coverage

0.42

Gross Profit margin

55.01%

FCF PER SHARE

$11.09

REVENUE PER SHARE

$49.62

Gainseekers Quantitative Analysis

Summary

The Bank of Nova Scotia’s valuation presents a striking disconnect. Despite a DCF value that towers over its recent pricing, the stock trades at a modest P/E of 11.39, suggesting the market may be undervaluing its future cash flows. The Forward P/E of 7.57 and a PEG ratio of 0.15 further underscore its potential for growth at a reasonable price. However, the Altman Z-score of 0.02 raises red flags about financial distress, hinting at underlying risks. The earnings yield of 6.43% suggests a decent return, but investors must weigh this against the company’s precarious financial footing.

AI Exposure / Tech Reliance

In the rapidly evolving financial sector, BNS is positioned to leverage AI and tech advancements to enhance its diversified banking services. As a major player, it can integrate AI to streamline operations and improve customer experiences. However, its adaptability will depend on management's strategic vision and execution.

The Bull Case

For the discerning GARP investor, BNS offers compelling reasons to buy. Its Piotroski F-Score of 6 indicates solid financial health, while a robust operating margin of 18.73% showcases pricing power. Despite a modest ROIC of 0.92%, the bank's ability to generate free cash flow, albeit with a low yield of 3.90%, suggests potential for capital efficiency improvements. These factors, combined with a strong dividend yield of 4.18%, make it an attractive proposition for those seeking value with growth potential.

The Bear Case

Yet, the bear case cannot be ignored. BNS's high Debt/Equity ratio of 5.80 and a staggering Net Debt to EBITDA of 19.22 highlight significant leverage concerns. The Price/Book ratio of 1.59 and Price/Sales of 2.10 suggest the stock is not a bargain, especially with an EV to EBITDA of 29.31. Trading close to its 52-week high, the stock appears technically overextended, raising questions about its current valuation sustainability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$72.15

Institutional Ownership %

1-Year Beta

1.22

Insider Buying % (6 Mo)

Distance to 52-Week High

2.06%

Distance to 52-Week Low

33.69%

EARNINGS SURPRISE %

3.52%

50-DAY SMA

$75.46

200-DAY SMA

$70.60

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.