AlphaMadera's AlphaVal page classifies The Bank of Nova Scotia as a Banks, Insurers & Asset Managers business and values it using P/Tangible Book × ROE Quality, then compares the result to the current market price to flag BNS as undervalued, fairly valued, or overvalued.

What is The Bank of Nova Scotia's fair value?

Fair value for BNS comes from a P/Tangible Book × ROE Quality model -- the approach AlphaVal selected for this company's Banks, Insurers & Asset Managers classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value BNS?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. BNS was classified as Banks, Insurers & Asset Managers and is valued using P/Tangible Book × ROE Quality, built from BNS's most recent reported fundamentals.

BNS - The Bank of Nova Scotia

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $72.15 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 90% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Overvalued Moderate

Trading 35.2% above fair value

Current Price $92.84

Bear Case $48.07 48.2% downside ($48.07 - $92.84) / $92.84 = -48.2% ROTCE 8.3% → 0.61x TBV

Fair Value $68.67 26.0% downside ($68.67 - $92.84) / $92.84 = -26.0% ROTCE 11.0% → 1.01x TBV

Bull Case $89.27 3.9% downside ($89.27 - $92.84) / $92.84 = -3.9% ROTCE 12.7% → 1.25x TBV

Adjust Assumptions

Return on Tangible Equity

11.0%

Cost of Equity

10.9%

Key Value Driver

ROTCE (11.0%) vs. cost of equity (10.9%)

Terminal Value % of EV

Implied Market Multiple 2.22x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 11.0% vs. 10.9% cost of equity, fair P/TBV is 1.01x on $41.83 tangible book, implying $68.67 per share. DDM cross-check: $32.65.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (19 analysts) $72.15

Analyst Range $67.00 – $75.60

Divergence from AlphaVal 5%

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.

⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

ℹ Dividend-based valuation: $32.65 (52% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

ℹ Financial statements were converted from CAD into USD using USDCAD at 0.7214 USD per CAD.

Key Risks

Book value quality matters as much as level — check loan loss reserves
Interest rate sensitivity creates non-linear earnings surprises
Insurance reserving is actuarial, not financial — errors emerge slowly