Discounted Cash Flow (DCF) Analysis Levered
The Bank of Nova Scotia (BNS)
$51.21
-1.02 (-1.95%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 28,216 | 30,384 | 31,094 | 30,913 | 31,148 | 31,942.15 | 32,756.55 | 33,591.72 | 34,448.17 | 35,326.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 17,811 | -12,025 | 56,664 | -12,807 | 16,943 | 13,974.53 | 14,330.83 | 14,696.21 | 15,070.90 | 15,455.15 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -416 | -186 | -771 | -462 | -571 | -504.29 | -517.15 | -530.33 | -543.85 | -557.72 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 17,395 | -12,211 | 55,893 | -13,269 | 16,372 | 13,470.24 | 13,813.68 | 14,165.88 | 14,527.05 | 14,897.43 |
Weighted Average Cost Of Capital
| Share price | $ 51.21 |
|---|---|
| Beta | 0.899 |
| Diluted Shares Outstanding | 1,225 |
| Cost of Debt | |
| Tax Rate | 23.32 |
| After-tax Cost of Debt | 3.81% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.751 |
| Total Debt | 310,855 |
| Total Equity | 62,732.25 |
| Total Capital | 373,587.25 |
| Debt Weighting | 83.21 |
| Equity Weighting | 16.79 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 28,216 | 30,384 | 31,094 | 30,913 | 31,148 | 31,942.15 | 32,756.55 | 33,591.72 | 34,448.17 | 35,326.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 17,811 | -12,025 | 56,664 | -12,807 | 16,943 | 13,974.53 | 14,330.83 | 14,696.21 | 15,070.90 | 15,455.15 |
| Capital Expenditure | -416 | -186 | -771 | -462 | -571 | -504.29 | -517.15 | -530.33 | -543.85 | -557.72 |
| Free Cash Flow | 17,395 | -12,211 | 55,893 | -13,269 | 16,372 | 13,470.24 | 13,813.68 | 14,165.88 | 14,527.05 | 14,897.43 |
| WACC | ||||||||||
| PV LFCF | 12,893.89 | 12,656.87 | 12,424.21 | 12,195.82 | 11,971.63 | |||||
| SUM PV LFCF | 62,142.41 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.47 |
| Free cash flow (t + 1) | 15,195.38 |
| Terminal Value | 615,197.62 |
| Present Value of Terminal Value | 494,375.20 |
Intrinsic Value
| Enterprise Value | 556,517.61 |
|---|---|
| Net Debt | 244,960 |
| Equity Value | 311,557.61 |
| Shares Outstanding | 1,225 |
| Equity Value Per Share | 254.33 |