Discounted Cash Flow (DCF) Analysis Unlevered

The Bank of Nova Scotia (BNS.TO)

$64.26

+0.37 (+0.58%)
All numbers are in Millions, Currency in USD
Stock DCF: -45.54 | 64.26 | overvalue

Operating Data

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 (%)
EBITDA 11,9159,86714,00629,64811,45615,933.0216,135.8916,341.3416,549.4116,760.12
EBITDA (%)
EBIT 10,8628,32112,49528,1179,63614,390.9114,574.1414,759.7114,947.6415,137.96
EBIT (%)
Depreciation 1,0531,5461,5111,5311,8201,542.111,561.741,581.631,601.771,622.16
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 81,464116,499120,053119,307140,826119,504.98121,026.59122,567.58124,128.19125,708.66
Total Cash (%)
Account Receivables 7,7838,7059,07513,38214,01010,942.1811,081.5011,222.6011,365.4911,510.21
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 9,2038,3098,92012,56416,97811,562.8711,710.0911,859.1912,010.1912,163.11
Accounts Payable (%)
Capital Expenditure -186-771-462-571-442-502.01-508.41-514.88-521.44-528.07
Capital Expenditure (%)

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

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
EBITDA 11,9159,86714,00629,64811,45615,933.0216,135.8916,341.3416,549.4116,760.12
EBIT 10,8628,32112,49528,1179,63614,390.9114,574.1414,759.7114,947.6415,137.96
Tax Rate 25.55%19.27%24.96%25.33%28.33%24.69%24.69%24.69%24.69%24.69%
EBIAT 8,086.266,717.459,375.6320,994.266,906.4310,837.8010,975.7911,115.5411,257.0711,400.40
Depreciation 1,0531,5461,5111,5311,8201,542.111,561.741,581.631,601.771,622.16
Accounts Receivable --922-370-4,307-6283,067.82-139.32-141.10-142.89-144.71
Inventories ----------
Accounts Payable --8946113,6444,414-5,415.13147.23149.10151152.92
Capital Expenditure -186-771-462-571-442-502.01-508.41-514.88-521.44-528.07
UFCF 8,953.265,676.4510,665.6321,291.2612,070.439,530.5812,037.0312,190.2912,345.5112,502.70
WACC
PV UFCF 8,760.5310,170.489,467.768,813.598,204.63
SUM PV UFCF 45,416.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.79
Free cash flow (t + 1) 12,752.75
Terminal Value 187,816.67
Present Value of Terminal Value 123,250.66

Intrinsic Value

Enterprise Value 168,667.65
Net Debt 223,501
Equity Value -54,833.35
Shares Outstanding 1,204
Equity Value Per Share -45.54