Discounted Cash Flow (DCF) Analysis Levered

The Bank of Nova Scotia (BNS.TO)

$64.26

+0.37 (+0.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.66 | 64.26 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 30,23631,29230,91331,14831,78732,191.7332,601.6233,016.7233,437.1133,862.85
Revenue (%)
Operating Cash Flow -12,02556,664-12,80716,94331,72416,358.4716,566.7616,777.6916,991.3217,207.66
Operating Cash Flow (%)
Capital Expenditure -186-771-462-571-442-502.01-508.41-514.88-521.44-528.07
Capital Expenditure (%)
Free Cash Flow -12,21155,893-13,26916,37231,28215,856.4516,058.3516,262.8116,469.8816,679.59

Weighted Average Cost Of Capital

Share price $ 64.26
Beta 0.947
Diluted Shares Outstanding 1,204
Cost of Debt
Tax Rate 28.33
After-tax Cost of Debt 8.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.755
Total Debt 313,813
Total Equity 77,369.04
Total Capital 391,182.04
Debt Weighting 80.22
Equity Weighting 19.78
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 30,23631,29230,91331,14831,78732,191.7332,601.6233,016.7233,437.1133,862.85
Operating Cash Flow -12,02556,664-12,80716,94331,72416,358.4716,566.7616,777.6916,991.3217,207.66
Capital Expenditure -186-771-462-571-442-502.01-508.41-514.88-521.44-528.07
Free Cash Flow -12,21155,893-13,26916,37231,28215,856.4516,058.3516,262.8116,469.8816,679.59
WACC
PV LFCF 14,575.2913,568.2212,630.7411,758.0310,945.62
SUM PV LFCF 63,477.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.79
Free cash flow (t + 1) 17,013.18
Terminal Value 250,562.27
Present Value of Terminal Value 164,426.12

Intrinsic Value

Enterprise Value 227,904.02
Net Debt 223,501
Equity Value 4,403.02
Shares Outstanding 1,204
Equity Value Per Share 3.66