Discounted Cash Flow (DCF) Analysis Unlevered

The Bank of Nova Scotia (BNS)

$51.3

-1.57 (-2.97%)
All numbers are in Millions, Currency in USD
Stock DCF: 927.30 | 51.3 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 26,74828,21630,38431,09430,91332,066.5633,263.1634,504.4235,791.9937,127.61
Revenue (%)
EBITDA 19,69123,65427,52222,25922,03125,068.5526,004.0126,974.3827,980.9729,025.11
EBITDA (%)
EBIT 18,93022,80626,46920,71320,52023,838.7324,728.3025,651.0726,608.2727,601.19
EBIT (%)
Depreciation 7618481,0531,5461,5111,229.821,275.711,323.321,372.701,423.92
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 105,587110,68381,464116,499120,053116,604.08120,955.31125,468.91130,150.93135,007.68
Total Cash (%)
Account Receivables 5,1967,4737,7838,7059,0758,265.388,573.818,893.769,225.649,569.90
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 8,8359,3969,2038,3098,9209,760.8710,125.1110,502.9410,894.8711,301.43
Accounts Payable (%)
Capital Expenditure --416-186-771-462-485.86-503.99-522.79-542.30-562.54
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 51.3
Beta 0.899
Diluted Shares Outstanding 1,225
Cost of Debt
Tax Rate 24.96
After-tax Cost of Debt 2.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.993
Total Debt 245,658
Total Equity 62,842.50
Total Capital 308,500.50
Debt Weighting 79.63
Equity Weighting 20.37
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 26,74828,21630,38431,09430,91332,066.5633,263.1634,504.4235,791.9937,127.61
EBITDA 19,69123,65427,52222,25922,03125,068.5526,004.0126,974.3827,980.9729,025.11
EBIT 18,93022,80626,46920,71320,52023,838.7324,728.3025,651.0726,608.2727,601.19
Tax Rate 22.10%23.03%25.55%19.27%24.96%22.98%22.98%22.98%22.98%22.98%
EBIAT 14,746.4617,553.1919,704.9616,721.3815,397.2018,359.4819,044.5919,755.2620,492.4521,257.16
Depreciation 7618481,0531,5461,5111,229.821,275.711,323.321,372.701,423.92
Accounts Receivable --2,277-310-922-370809.62-308.43-319.94-331.88-344.27
Inventories ----------
Accounts Payable -561-193-894611840.87364.24377.83391.93406.56
Capital Expenditure --416-186-771-462-485.86-503.99-522.79-542.30-562.54
UFCF 15,507.4616,269.1920,068.9615,680.3816,687.2020,753.9419,872.1220,613.6721,382.9022,180.83
WACC
PV UFCF 20,036.6318,522.1918,549.3118,576.4618,603.65
SUM PV UFCF 94,288.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.58
Free cash flow (t + 1) 22,624.44
Terminal Value 1,431,926.83
Present Value of Terminal Value 1,200,995.26

Intrinsic Value

Enterprise Value 1,295,283.50
Net Debt 159,335
Equity Value 1,135,948.50
Shares Outstanding 1,225
Equity Value Per Share 927.30