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
Stock DCF: 254.33 | 51.21 | undervalue

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 28,21630,38431,09430,91331,14831,942.1532,756.5533,591.7234,448.1735,326.47
Revenue (%)
Operating Cash Flow 17,811-12,02556,664-12,80716,94313,974.5314,330.8314,696.2115,070.9015,455.15
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 17,395-12,21155,893-13,26916,37213,470.2413,813.6814,165.8814,527.0514,897.43

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 28,21630,38431,09430,91331,14831,942.1532,756.5533,591.7234,448.1735,326.47
Operating Cash Flow 17,811-12,02556,664-12,80716,94313,974.5314,330.8314,696.2115,070.9015,455.15
Capital Expenditure -416-186-771-462-571-504.29-517.15-530.33-543.85-557.72
Free Cash Flow 17,395-12,21155,893-13,26916,37213,470.2413,813.6814,165.8814,527.0514,897.43
WACC
PV LFCF 12,893.8912,656.8712,424.2112,195.8211,971.63
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