Discounted Cash Flow (DCF) Analysis Levered
The Bank of Nova Scotia (BNS)
$53.61
+0.55 (+1.04%)
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 | $ 53.61 |
---|---|
Beta | 0.915 |
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 | 7.840 |
Total Debt | 310,855 |
Total Equity | 65,672.25 |
Total Capital | 376,527.25 |
Debt Weighting | 82.56 |
Equity Weighting | 17.44 |
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 | 12,888.95 | 12,647.18 | 12,409.95 | 12,177.16 | 11,948.74 | |||||
SUM PV LFCF | 62,071.98 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.51 |
Free cash flow (t + 1) | 15,195.38 |
Terminal Value | 605,393.68 |
Present Value of Terminal Value | 485,566.42 |
Intrinsic Value
Enterprise Value | 547,638.40 |
---|---|
Net Debt | 244,960 |
Equity Value | 302,678.40 |
Shares Outstanding | 1,225 |
Equity Value Per Share | 247.08 |