Bank of Montreal (BMO:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Bank of Montreal(BMO:NYS)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$92.00 (CAD) / $68.75 (USD) 10/12/2018

Weighted Valuation
$108.32 (CAD) / $80.95 (USD)

Use a conversion rate of 0.74731714 from CAD to USD.

Overall Rating
Undervalued by 17.7%

Valuation Models Analyst Consensus: $112.33 (CAD) / $83.95 (USD)
(in order of importance) Adjusted Book Value: $109.57 (CAD) / $81.88 (USD)
Discounted Cash Flow: $93.76 (CAD) / $70.07 (USD)
Valuation Methods This company is:
Cash Flow: Fairly valued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (BMO:NYS USD)

Price 0.00
Range 0.00 – 0.00
52 week 0.00 – 0.00
Open 0.00
Vol / Avg. 0/0
Mkt cap 0
P/E 0.00
Div/yield 0.00/0.00
EPS 0.00
Shares 0
Beta 0.00

Company Description

Bank of Montreal is a diversified financial-services provider based in North America, operating four business segments: Canadian P&C banking, U.S. P&C banking, wealth management, and capital markets.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for BMO:NYS

Using a discounted cash flow model we generated an intrinsic value of $93.76 (CAD) / $70.07 (USD) for BMO:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

BMO:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $93.76 1% 5% 1% 5%
WACC (or Ke) 11.38 $106.51 $83.72
Terminal Growth Rate 3.00 $85.16 $104.68
Tax Rate 0.27 $100.25 $87.26
Cash Flow 7,804,282,652 $88.87 $98.64
Capital Expenditures -277,800,000 $93.60 $93.91
Long Term Debt 0 $93.76 $93.76

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $93.50 (CAD) / $69.87 (USD) for BMO:NYS. We also generated a valuation of $109.21 (CAD) / $81.61 (USD) using other metrics and comparables.
The comparable companies were Bank of Nova Scotia (BNS:NYS) and Royal Bank of Canada (RY:NYS).

Company BMO:NYS End Date Value
Earnings/Share $8.17 (CAD) / $6.11 (USD)
Book Value/Share $63.87 (CAD) / $47.73 (USD)
Sales/Share $35.19 (CAD) / $26.30 (USD)
Cash Flow/Share $15.06 (CAD) / $11.25 (USD)
EBITDA/Share $26.44 (CAD) / $19.76 (USD)
Price Based on Comps Adjustment Factor (%)
$90.78 (CAD) / $67.84 (USD) -60.1
$107.11 (CAD) / $80.05 (USD) 5.2
$113.68 (CAD) / $84.95 (USD) 9.7
$84.24 (CAD) / $62.95 (USD) 2.1
$0.00 (CAD) / $0.00 (USD) -75.3
BMO:NYS Ratios Used Average Values BNS:NYS RY:NYS
13.37 PE Ratio 11.11 10.59 11.64
1.56 PB Ratio 1.68 1.45 1.90
2.83 PS Ratio 3.23 3.15 3.32
6.62 PCF Ratio 6.53 4.98 8.07
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $126.67 (CAD) / $94.66 (USD) for BMO:NYS

Company BMO:NYS End Date Value
Earnings/Share $8.17 (CAD) / $6.11 (USD)
Book Value/Share $63.87 (CAD) / $47.73 (USD)
Sales/Share $35.19 (CAD) / $26.30 (USD)
Cash Flow/Share $15.06 (CAD) / $11.25 (USD)
EBITDA/Share $26.44 (CAD) / $19.76 (USD)
Price Based on Comps Adjustment Factor
$100.73 (CAD) / $75.27 (USD) 0
$97.89 (CAD) / $73.15 (USD) 0
$100.17 (CAD) / $74.86 (USD) 0
$327.50 (CAD) / $244.74 (USD) 0
$7.06 (CAD) / $5.28 (USD) 0
Ratios Ratio Average
PE Ratio 12.33
PB Ratio 1.53
PS Ratio 2.85
PCF Ratio 21.75
EV to EBITDA 0.27

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  BMO:NYS for the last 10 years was  1.53

We ran the Adjusted Book Value for  BMO:NYS and generated a book value of  $71.53 (CAD) / $53.45 (USD)
By multiplying these we get an adjusted valuation of  $109.57 (CAD) / $81.88 (USD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for BMO:NYS. The 9 analysts have a concensus valuation for BMO:NYS for 2019 of $112.33 (CAD) / $83.95 (USD).

BMO:NYS Bank of Montreal

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 4 0 3.8000 Outperform 2018-12-7

Current Price: 68.75 USD

Analyst Consensus
CAD Millions 2019 2020 2021
Mean EPS 9.57 10.17 10.53
# EPS Analysts 9 9 1
Mean Revenue 23,213.00 24,141.30
# Revenue Analysts 7 6
Mean Target Price 112.33
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


National Bank of Canada (NA:TSE) Fundamental Valuation Report

Fundamental Valuation Report

National Bank of Canada(NA:TSE)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$58.79 (CAD) 10/12/2018

Weighted Valuation
$64.28 (CAD)

Overall Rating
Undervalued by 9.3%

Valuation Models Analyst Consensus: $68.00 (CAD)
(in order of importance) Discounted Cash Flow: $68.57 (CAD)
Comparables: $44.57 (CAD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (NA:TSE CAD)

Price 58.79
Range 58.38 – 59.35
52 week 58.69 – 65.63
Open 58.95
Vol / Avg. 840312/876606
Mkt cap 19.8B
P/E 9.90
Div/yield 2.44/0.04
EPS 5.94
Shares 335.78M
Beta 1.20

Company Description

National Bank of Canada is the sixth- largest Canadian bank. The bank offers integrated financial services, primarily in the province of Quebec as well as the city of Toronto. Operational segments include personal and commercial banking, wealth management, and a financial markets group.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for NA:TSE

Using a discounted cash flow model we generated an intrinsic value of $68.57 (CAD) for NA:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

NA:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $68.57 1% 5% 1% 5%
WACC (or Ke) 11.55 $78.35 $60.84
Terminal Growth Rate 3.00 $61.96 $76.92
Tax Rate 0.20 $73.22 $63.91
Cash Flow 3,000,617,034 $64.73 $72.40
Capital Expenditures -115,600,000 $68.44 $68.69
Long Term Debt 0 $68.57 $68.57

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $44.57 (CAD) for NA:TSE. We also generated a valuation of $63.05 (CAD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:NYS), Bank of Nova Scotia (BNS:NYS) and Canadian Imperial Bank (CM:NYS).

Company NA:TSE End Date Value
Earnings/Share $5.94 (CAD)
Book Value/Share $34.07 (CAD)
Sales/Share $20.40 (CAD)
Cash Flow/Share $10.69 (CAD)
EBITDA/Share $18.44 (CAD)
Price Based on Comps Adjustment Factor (%)
$66.36 (CAD) -64.6
$51.34 (CAD) 24.8
$59.66 (CAD) 6.4
$54.06 (CAD) -54.0
$0.00 (CAD) -20.7
NA:TSE Ratios Used Average Values BMO:NYS BNS:NYS CM:NYS
10.43 PE Ratio 11.17 13.37 10.59 9.56
1.78 PB Ratio 1.51 1.56 1.45 1.51
2.97 PS Ratio 2.92 2.83 3.15 2.80
5.67 PCF Ratio 5.54 6.62 4.98 5.02
0.00 EV to EBITDA 0.00 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $71.85 (CAD) for NA:TSE

Company NA:TSE End Date Value
Earnings/Share $5.94 (CAD)
Book Value/Share $34.07 (CAD)
Sales/Share $20.40 (CAD)
Cash Flow/Share $10.69 (CAD)
EBITDA/Share $18.44 (CAD)
Price Based on Comps Adjustment Factor
$69.00 (CAD) 0
$62.08 (CAD) 0
$59.96 (CAD) 0
$41.41 (CAD) 0
$126.82 (CAD) 0
Ratios Ratio Average
PE Ratio 11.62
PB Ratio 1.82
PS Ratio 2.94
PCF Ratio 3.87
EV to EBITDA 6.88

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  NA:TSE for the last 10 years was  1.82

We ran the Adjusted Book Value for  NA:TSE and generated a book value of  $41.71 (CAD)
By multiplying these we get an adjusted valuation of  $75.92 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for NA:TSE. The 8 analysts have a concensus valuation for NA:TSE for 2019 of $68.00 (CAD).

NA:TSE National Bank of Canada

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 7 0 3.1250 Hold 2018-12-7

Current Price: 58.79 CAD

Analyst Consensus
CAD Millions 2019 2020 2021
Mean EPS 6.38 6.76 7.38
# EPS Analysts 9 9 1
Mean Revenue 7,622.90 7,970.40
# Revenue Analysts 7 7
Mean Target Price 68.00
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Bank of Montreal (BMO:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Bank of Montreal(BMO:TSE)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$92.16 (CAD) 10/12/2018

Weighted Valuation
$108.19 (CAD)

Overall Rating
Undervalued by 17.4%

Valuation Models Analyst Consensus: $112.33 (CAD)
(in order of importance) Adjusted Book Value: $109.70 (CAD)
Comparables: $92.76 (CAD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (BMO:TSE CAD)

Price 92.16
Range 91.55 – 93.00
52 week 92.16 – 108.32
Open 92.50
Vol / Avg. 2.38M/1.68M
Mkt cap 60.06B
P/E 11.28
Div/yield 3.78/0.04
EPS 8.17
Shares 639.3M
Beta 0.93

Company Description

Bank of Montreal is a diversified financial-services provider based in North America, operating four business segments: Canadian P&C banking, U.S. P&C banking, wealth management, and capital markets.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for BMO:TSE

Using a discounted cash flow model we generated an intrinsic value of $112.87 (CAD) for BMO:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

BMO:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $112.87 1% 5% 1% 5%
WACC (or Ke) 9.97 $131.85 $98.65
Terminal Growth Rate 3.00 $100.38 $129.53
Tax Rate 0.27 $120.68 $105.06
Cash Flow 7,804,282,652 $106.99 $118.75
Capital Expenditures -277,800,000 $112.67 $113.06
Long Term Debt 0 $112.87 $112.87

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $92.76 (CAD) for BMO:TSE. We also generated a valuation of $99.55 (CAD) using other metrics and comparables.
The comparable companies were Bank of Nova Scotia (BNS:NYS) and Royal Bank of Canada (RY:NYS).

Company BMO:TSE End Date Value
Earnings/Share $8.17 (CAD)
Book Value/Share $63.38 (CAD)
Sales/Share $34.92 (CAD)
Cash Flow/Share $14.94 (CAD)
EBITDA/Share $26.44 (CAD)
Price Based on Comps Adjustment Factor (%)
$90.78 (CAD) -60.1
$106.28 (CAD) 5.1
$112.80 (CAD) 9.6
$87.03 (CAD) 2.0
$0.00 (CAD) -75.3
BMO:TSE Ratios Used Average Values BNS:NYS RY:NYS
13.40 PE Ratio 11.11 10.59 11.64
1.56 PB Ratio 1.68 1.45 1.90
2.84 PS Ratio 3.23 3.15 3.32
6.63 PCF Ratio 6.53 4.98 8.07
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $126.30 (CAD) for BMO:TSE

Company BMO:TSE End Date Value
Earnings/Share $8.17 (CAD)
Book Value/Share $63.38 (CAD)
Sales/Share $34.92 (CAD)
Cash Flow/Share $14.94 (CAD)
EBITDA/Share $26.44 (CAD)
Price Based on Comps Adjustment Factor
$100.74 (CAD) 0
$97.28 (CAD) 0
$99.46 (CAD) 0
$324.83 (CAD) 0
$9.18 (CAD) 0
Ratios Ratio Average
PE Ratio 12.33
PB Ratio 1.54
PS Ratio 2.85
PCF Ratio 21.74
EV to EBITDA 0.35

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  BMO:TSE for the last 10 years was  1.53

We ran the Adjusted Book Value for  BMO:TSE and generated a book value of  $71.53 (CAD)
By multiplying these we get an adjusted valuation of  $109.70 (CAD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for BMO:TSE. The 9 analysts have a concensus valuation for BMO:TSE for 2019 of $112.33 (CAD).

BMO:TSE Bank of Montreal

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 4 0 3.8000 Outperform 2018-12-7

Current Price: 92.16 CAD

Analyst Consensus
CAD Millions 2019 2020 2021
Mean EPS 9.57 10.17 10.53
# EPS Analysts 9 9 1
Mean Revenue 23,213.00 24,141.30
# Revenue Analysts 7 6
Mean Target Price 112.33
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


The Toronto-Dominion Bank (TD:TSE) Fundamental Valuation Report

Fundamental Valuation Report

The Toronto-Dominion Bank(TD:TSE)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$73.48 (CAD) 29/11/2018

Weighted Valuation
$81.87 (CAD)

Overall Rating
Undervalued by 11.4%

Valuation Models Analyst Consensus: $85.13 (CAD)
(in order of importance) Adjusted Book Value: $77.28 (CAD)
Discounted Cash Flow: $81.30 (CAD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (TD:TSE CAD)

Price 73.48
Range 72.97 – 74.26
52 week 69.50 – 79.73
Open 74.26
Vol / Avg. 3.43M/2.84M
Mkt cap 134.4B
P/E 12.56
Div/yield 2.61/0.04
EPS 6.01
Shares 1.83B
Beta 0.84

Company Description

Toronto-Dominion is one of Canada’s two largest banks and operates three business segments: Canadian retail banking, U.S. retail banking, and wholesale banking. The bank’s U.S. operations span from Maine to Florida, with a strong presence in the Northeast. It also has a 42% ownership stake in TD Ameritrade, a discount brokerage.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for TD:TSE

Using a discounted cash flow model we generated an intrinsic value of $81.30 (CAD) for TD:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

TD:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $81.30 1% 5% 1% 5%
WACC (or Ke) 9.53 $96.43 $70.20
Terminal Growth Rate 3.00 $71.47 $94.70
Tax Rate 0.23 $86.83 $75.78
Cash Flow 14,935,290,939 $76.91 $85.70
Capital Expenditures -725,400,000 $81.11 $81.50
Long Term Debt 0 $81.30 $81.30

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $55.28 (CAD) for TD:TSE. We also generated a valuation of $82.64 (CAD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:TSE), Bank of Nova Scotia (BNS:TSE) and Royal Bank of Canada (RY:TSE).

Company TD:TSE End Date Value
Earnings/Share $6.01 (CAD)
Book Value/Share $39.34 (CAD)
Sales/Share $20.43 (CAD)
Cash Flow/Share $14.51 (CAD)
EBITDA/Share $15.64 (CAD)
Price Based on Comps Adjustment Factor (%)
$71.52 (CAD) -55.4
$64.42 (CAD) 21.8
$62.86 (CAD) 36.1
$14.61 (CAD) -69.1
$0.00 (CAD) -77.4
TD:TSE Ratios Used Average Values BMO:TSE BNS:TSE RY:TSE
12.48 PE Ratio 11.90 13.30 10.48 11.92
1.86 PB Ratio 1.64 1.55 1.43 1.93
3.57 PS Ratio 3.08 2.82 3.12 3.29
5.03 PCF Ratio 5.63 6.59 0.00 4.67
0.00 EV to EBITDA 0.00 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $57.12 (CAD) for TD:TSE

Company TD:TSE End Date Value
Earnings/Share $6.01 (CAD)
Book Value/Share $39.34 (CAD)
Sales/Share $20.43 (CAD)
Cash Flow/Share $14.51 (CAD)
EBITDA/Share $15.64 (CAD)
Price Based on Comps Adjustment Factor
$79.20 (CAD) 0
$70.65 (CAD) 0
$69.49 (CAD) 0
$48.10 (CAD) 0
$18.14 (CAD) 0
Ratios Ratio Average
PE Ratio 13.18
PB Ratio 1.80
PS Ratio 3.40
PCF Ratio 3.31
EV to EBITDA 1.16

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  TD:TSE for the last 10 years was  1.79

We ran the Adjusted Book Value for  TD:TSE and generated a book value of  $43.19 (CAD)
By multiplying these we get an adjusted valuation of  $77.28 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for TD:TSE. The 8 analysts have a concensus valuation for TD:TSE for 2019 of $85.13 (CAD).

TD:TSE The Toronto-Dominion Bank

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
4 2 0 4.2222 Outperform 2018-11-28

Current Price: 73.48 CAD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 6.92 7.35
# EPS Analysts 8 7
Mean Revenue 39,220.50 41,668.80
# Revenue Analysts 6 4
Mean Target Price 85.13
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


The Toronto-Dominion Bank (TD:NYS) Fundamental Valuation Report

Fundamental Valuation Report

The Toronto-Dominion Bank(TD:NYS)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$73.56 (CAD) / $55.25 (USD) 29/11/2018

Weighted Valuation
$79.94 (CAD) / $60.04 (USD)

Use a conversion rate of 0.7510439 from CAD to USD.

Overall Rating
Undervalued by 8.7%

Valuation Models Analyst Consensus: $85.13 (CAD) / $63.93 (USD)
(in order of importance) Adjusted Book Value: $77.20 (CAD) / $57.98 (USD)
Discounted Cash Flow: $69.85 (CAD) / $52.46 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation

Company Overview (TD:NYS USD)

Price 0.00
Range 0.00 – 0.00
52 week 0.00 – 0.00
Open 0.00
Vol / Avg. 0/0
Mkt cap 0
P/E 0.00
Div/yield 0.00/0.00
EPS 0.00
Shares 0
Beta 0.00

Company Description

Toronto-Dominion is one of Canada’s two largest banks and operates three business segments: Canadian retail banking, U.S. retail banking, and wholesale banking. The bank’s U.S. operations span from Maine to Florida, with a strong presence in the Northeast. It also has a 42% ownership stake in TD Ameritrade, a discount brokerage.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for TD:NYS

Using a discounted cash flow model we generated an intrinsic value of $69.85 (CAD) / $52.46 (USD) for TD:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

TD:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $69.85 1% 5% 1% 5%
WACC (or Ke) 10.57 $80.85 $61.43
Terminal Growth Rate 3.00 $62.53 $79.41
Tax Rate 0.23 $74.62 $65.08
Cash Flow 14,935,290,939 $66.06 $73.64
Capital Expenditures -725,400,000 $69.69 $70.02
Long Term Debt 0 $69.85 $69.85

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $55.96 (CAD) / $42.03 (USD) for TD:NYS. We also generated a valuation of $80.93 (CAD) / $60.78 (USD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:TSE), Bank of Nova Scotia (BNS:TSE) and Royal Bank of Canada (RY:NYS).

Company TD:NYS End Date Value
Earnings/Share $6.01 (CAD) / $4.51 (USD)
Book Value/Share $39.93 (CAD) / $29.99 (USD)
Sales/Share $20.73 (CAD) / $15.57 (USD)
Cash Flow/Share $14.73 (CAD) / $11.06 (USD)
EBITDA/Share $15.64 (CAD) / $11.75 (USD)
Price Based on Comps Adjustment Factor (%)
$71.43 (CAD) / $53.65 (USD) -55.4
$65.28 (CAD) / $49.03 (USD) 21.9
$63.71 (CAD) / $47.85 (USD) 36.2
($6.55) (CAD) / ($4.92) (USD) -69.1
$0.00 (CAD) / $0.00 (USD) -77.3
TD:NYS Ratios Used Average Values BMO:TSE BNS:TSE RY:NYS
12.44 PE Ratio 11.89 13.30 10.48 11.87
1.85 PB Ratio 1.64 1.55 1.43 1.92
3.56 PS Ratio 3.07 2.82 3.12 3.28
5.01 PCF Ratio 5.62 6.59 0.00 4.66
0.00 EV to EBITDA 0.00 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $57.77 (CAD) / $43.39 (USD) for TD:NYS

Company TD:NYS End Date Value
Earnings/Share $6.01 (CAD) / $4.51 (USD)
Book Value/Share $39.93 (CAD) / $29.99 (USD)
Sales/Share $20.73 (CAD) / $15.57 (USD)
Cash Flow/Share $14.73 (CAD) / $11.06 (USD)
EBITDA/Share $15.64 (CAD) / $11.75 (USD)
Price Based on Comps Adjustment Factor
$79.23 (CAD) / $59.50 (USD) 0
$71.64 (CAD) / $53.81 (USD) 0
$70.53 (CAD) / $52.97 (USD) 0
$48.82 (CAD) / $36.67 (USD) 0
$18.63 (CAD) / $13.99 (USD) 0
Ratios Ratio Average
PE Ratio 13.18
PB Ratio 1.79
PS Ratio 3.40
PCF Ratio 3.32
EV to EBITDA 1.19

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  TD:NYS for the last 10 years was  1.79

We ran the Adjusted Book Value for  TD:NYS and generated a book value of  $43.19 (CAD) / $32.43 (USD)
By multiplying these we get an adjusted valuation of  $77.20 (CAD) / $57.98 (USD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for TD:NYS. The 8 analysts have a concensus valuation for TD:NYS for 2019 of $85.13 (CAD) / $63.93 (USD).

TD:NYS The Toronto-Dominion Bank

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
4 2 0 4.2222 Outperform 2018-11-28

Current Price: 55.25 USD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 6.92 7.35
# EPS Analysts 8 7
Mean Revenue 39,220.50 41,668.80
# Revenue Analysts 6 4
Mean Target Price 85.13
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Medtronic (MDT:NYS) and Abbott Laboratories (ABT:NYS) Upgraded

Stockcalc – Free Trial

Have a free look inside the StockCalc website at www.stockcalc.com



I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Upgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been upgraded by at least one analyst in the last few days.

Why Do Companies Get Upgraded?

Companies can get upgraded for a number of reasons, but primarily due to improved future earnings potential due to new contracts, new products, cost savings or restructuring.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
MDT Medtronic PLC 5 1 1 0 0 0 4.5714 4.5000 Buy
ABT Abbott Laboratories 5 0 0 1 0 0 4.5000 4.4000 Outperform
BNS Bank of Nova Scotia 3 3 3 0 0 0 4.0000 3.8889 Outperform
BSX Boston Scientific Corp 5 0 2 1 0 0 4.1250 4.0000 Outperform
ECL Ecolab Inc 6 0 4 0 0 0 4.2000 4.0909 Outperform
HUM Humana Inc 4 0 2 1 0 0 4.0000 3.8571 Outperform
BAX Baxter International Inc 3 0 2 0 0 0 4.2000 4.0000 Outperform
ZBH Zimmer Biomet Holdings Inc 4 0 5 0 1 0 3.6000 3.4444 Outperform
RF Regions Financial Corp 2 0 6 0 0 0 3.5000 3.2857 Hold
HSY The Hershey Co 1 0 5 0 1 0 3.0000 2.7500 Hold
TFX Teleflex Inc 1 0 0 1 0 0 3.5000 2.0000 Hold
VAR Varian Medical Systems Inc 2 0 2 0 1 0 3.4000 3.0000 Hold
MAS Masco Corp 4 1 3 0 0 0 4.1250 4.0000 Outperform
PVH PVH Corp 5 0 2 0 0 0 4.4286 4.2500 Outperform
HRC Hill-Rom Holdings Inc 2 0 0 1 0 0 4.0000 3.5000 Outperform
COTY Coty Inc 2 0 4 0 0 0 3.6667 3.5000 Outperform
NFX Newfield Exploration Co 4 0 1 0 0 0 4.6000 4.3333 Buy
WLL Whiting Petroleum Corp 3 0 1 0 0 0 4.5000 4.2000 Outperform
DEA Easterly Government Properties Inc 1 0 1 0 0 0 4.0000 3.0000 Outperform
GMRE Global Medical REIT Inc 4 0 0 0 0 0 5.0000 4.5000 Buy
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
BNS Bank of Nova Scotia 3 3 3 0 0 0 4.0000 3.8889 Outperform
EFN Element Fleet Management Corp 5 2 1 0 0 0 4.5000 4.3750 Outperform
PBH Premium Brands Holdings Corp 5 4 1 0 0 0 4.4000 4.3000 Outperform
TCL.B Transcontinental Inc 3 2 3 0 0 0 4.0000 3.7500 Outperform
TCL.A Transcontinental Inc 3 2 3 0 0 0 4.0000 3.7500 Outperform
SCL Shawcor Ltd 3 2 1 0 1 0 3.8571 3.7143 Outperform
CFW Calfrac Well Services Ltd 5 4 2 0 0 0 4.2727 4.2500 Outperform
KEW Kew Media Group Inc 2 2 0 0 0 0 4.5000 4.3333 Outperform
TSX Venture Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
AGB Atlantic Gold Corp 5 3 1 0 0 0 4.4444 4.3333 Outperform
TBRD Thunderbird Entertainment Inc 1 0 0 0 0 0 5.0000 0.0000 Buy
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
QCOM Qualcomm Inc 4 1 4 0 0 0 4.0000 3.9000 Outperform
ILMN Illumina Inc 4 0 1 1 0 0 4.1667 4.1429 Outperform
ULTI The Ultimate Software Group Inc 3 0 1 0 0 0 4.5000 4.2000 Outperform
SABR Sabre Corp 3 1 0 0 0 0 4.7500 4.0000 Buy
AZPN Aspen Technology Inc 1 0 1 0 0 0 4.0000 3.0000 Outperform
MASI Masimo Corp 1 0 1 0 0 0 4.0000 3.0000 Outperform
PODD Insulet Corp 2 0 1 1 0 0 3.7500 3.3333 Outperform
BLKB Blackbaud Inc 1 0 2 0 0 0 3.6667 3.0000 Outperform
WTRH Waitr Holdings Inc 1 0 0 0 0 0 5.0000 0.0000 Buy

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

MDT:NYS Medtronic

http://www.medtronic.com
Medtronic has 86000 employees and is headquartered in Ireland.
Medtronic PLC is a medical technology company. It is primarily manufactures and sells device-based medical therapies. It operates in Cardiac and Vascular, Minimally Invasive Therapies, Restorative Therapies and Diabetes segments.

ABT:NYS Abbott Laboratories

http://www.abbott.com
Abbott Laboratories has 99000 employees and is headquartered in United States.
Abbott Laboratories is a health care company that manufactures medical devices, blood glucose monitoring kits, nutritional healthcare products, diagnostic products and equipment, and branded generic drugs.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Bank of Nova Scotia (BNS:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Bank of Nova Scotia(BNS:NYS)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$71.86 (CAD) / $54.16 (USD) 28/11/2018

Weighted Valuation
$84.17 (CAD) / $63.44 (USD)

Use a conversion rate of 0.75373286 from CAD to USD.

Overall Rating
Undervalued by 17.1%

Valuation Models Analyst Consensus: $84.63 (CAD) / $63.78 (USD)
(in order of importance) Discounted Cash Flow: $83.57 (CAD) / $62.99 (USD)
Comparables: $84.02 (CAD) / $63.33 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (BNS:NYS USD)

Price 0.00
Range 0.00 – 0.00
52 week 0.00 – 0.00
Open 0.00
Vol / Avg. 0/0
Mkt cap 0
P/E 0.00
Div/yield 0.00/0.00
EPS 0.00
Shares 0
Beta 0.00

Company Description

The Bank of Nova Scotia is known as Canada’s "international bank" and is a global financial services provider. The bank has three business segments: Canadian banking, international banking, and global banking and markets. It is the third- largest bank in Canada. The bank’s international operations span numerous countries, and are more concentrated in Central and South America.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for BNS:NYS

Using a discounted cash flow model we generated an intrinsic value of $83.57 (CAD) / $62.99 (USD) for BNS:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

BNS:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $83.57 1% 5% 1% 5%
WACC (or Ke) 11.86 $94.56 $74.81
Terminal Growth Rate 3.00 $76.14 $92.90
Tax Rate 0.22 $89.11 $78.04
Cash Flow 13,363,798,337 $79.17 $87.97
Capital Expenditures -264,000,000 $83.50 $83.65
Long Term Debt 0 $83.57 $83.57

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $84.02 (CAD) / $63.33 (USD) for BNS:NYS. We also generated a valuation of $88.75 (CAD) / $66.89 (USD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:TSE) and Royal Bank of Canada (RY:NYS).

Company BNS:NYS End Date Value
Earnings/Share $6.82 (CAD) / $5.14 (USD)
Book Value/Share $50.07 (CAD) / $37.74 (USD)
Sales/Share $22.89 (CAD) / $17.25 (USD)
Cash Flow/Share ($6.50) (CAD) / ($4.90) (USD)
EBITDA/Share $19.39 (CAD) / $14.61 (USD)
Price Based on Comps Adjustment Factor (%)
$85.84 (CAD) / $64.70 (USD) -59.9
$87.16 (CAD) / $65.70 (USD) 36.3
$69.80 (CAD) / $52.61 (USD) 41.5
($6.15) (CAD) / ($4.64) (USD) -8.3
$0.00 (CAD) / $0.00 (USD) -68.1
BNS:NYS Ratios Used Average Values BMO:TSE RY:NYS
10.46 PE Ratio 12.59 13.30 11.87
1.42 PB Ratio 1.74 1.55 1.93
3.11 PS Ratio 3.05 2.82 3.28
0.00 PCF Ratio 5.62 6.59 4.66
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $63.34 (CAD) / $47.74 (USD) for BNS:NYS

Company BNS:NYS End Date Value
Earnings/Share $6.82 (CAD) / $5.14 (USD)
Book Value/Share $50.07 (CAD) / $37.74 (USD)
Sales/Share $22.89 (CAD) / $17.25 (USD)
Cash Flow/Share ($6.50) (CAD) / ($4.90) (USD)
EBITDA/Share $19.39 (CAD) / $14.61 (USD)
Price Based on Comps Adjustment Factor
$79.88 (CAD) / $60.21 (USD) 0
$84.51 (CAD) / $63.70 (USD) 0
$77.48 (CAD) / $58.40 (USD) 0
$0.00 (CAD) / $0.00 (USD) 0
$11.49 (CAD) / $8.66 (USD) 0
Ratios Ratio Average
PE Ratio 11.71
PB Ratio 1.69
PS Ratio 3.38
PCF Ratio 11.38
EV to EBITDA 0.59

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  BNS:NYS for the last 10 years was  1.69

We ran the Adjusted Book Value for  BNS:NYS and generated a book value of  $53.16 (CAD) / $40.07 (USD)
By multiplying these we get an adjusted valuation of  $90.04 (CAD) / $67.86 (USD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for BNS:NYS. The 8 analysts have a concensus valuation for BNS:NYS for 2019 of $84.63 (CAD) / $63.78 (USD).

BNS:NYS Bank of Nova Scotia

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
3 4 0 3.8889 Outperform 2018-11-27

Current Price: 54.16 USD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 7.42 7.91
# EPS Analysts 8 7
Mean Revenue 30,992.80 32,515.30
# Revenue Analysts 6 4
Mean Target Price 84.63
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Bank of Nova Scotia (BNS:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Bank of Nova Scotia(BNS:TSE)

Financial Services:Banks-Global

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$72.13 (CAD) 28/11/2018

Weighted Valuation
$86.64 (CAD)

Overall Rating
Undervalued by 20.1%

Valuation Models Analyst Consensus: $84.63 (CAD)
(in order of importance) Adjusted Book Value: $89.91 (CAD)
Discounted Cash Flow: $86.12 (CAD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (BNS:TSE CAD)

Price 72.13
Range 70.40 – 72.20
52 week 69.15 – 83.60
Open 70.50
Vol / Avg. 5.34M/2.13M
Mkt cap 86.08B
P/E 10.58
Div/yield 3.28/0.05
EPS 6.82
Shares 1.23B
Beta 1.20

Company Description

The Bank of Nova Scotia is known as Canada’s "international bank" and is a global financial services provider. The bank has three business segments: Canadian banking, international banking, and global banking and markets. It is the third- largest bank in Canada. The bank’s international operations span numerous countries, and are more concentrated in Central and South America.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for BNS:TSE

Using a discounted cash flow model we generated an intrinsic value of $86.12 (CAD) for BNS:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

BNS:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $86.12 1% 5% 1% 5%
WACC (or Ke) 11.61 $97.81 $76.86
Terminal Growth Rate 3.00 $78.23 $96.09
Tax Rate 0.22 $91.82 $80.42
Cash Flow 13,363,798,337 $81.59 $90.65
Capital Expenditures -264,000,000 $86.04 $86.20
Long Term Debt 0 $86.12 $86.12

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $83.21 (CAD) for BNS:TSE. We also generated a valuation of $83.65 (CAD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:TSE) and Royal Bank of Canada (RY:NYS).

Company BNS:TSE End Date Value
Earnings/Share $6.82 (CAD)
Book Value/Share $49.51 (CAD)
Sales/Share $22.64 (CAD)
Cash Flow/Share ($6.43) (CAD)
EBITDA/Share $19.39 (CAD)
Price Based on Comps Adjustment Factor (%)
$85.84 (CAD) -59.9
$86.19 (CAD) 36.4
$69.02 (CAD) 41.5
($4.64) (CAD) -8.4
$0.00 (CAD) -68.0
BNS:TSE Ratios Used Average Values BMO:TSE RY:NYS
10.48 PE Ratio 12.59 13.30 11.87
1.43 PB Ratio 1.74 1.55 1.93
3.12 PS Ratio 3.05 2.82 3.28
0.00 PCF Ratio 5.62 6.59 4.66
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $62.76 (CAD) for BNS:TSE

Company BNS:TSE End Date Value
Earnings/Share $6.82 (CAD)
Book Value/Share $49.51 (CAD)
Sales/Share $22.64 (CAD)
Cash Flow/Share ($6.43) (CAD)
EBITDA/Share $19.39 (CAD)
Price Based on Comps Adjustment Factor
$79.80 (CAD) 0
$83.54 (CAD) 0
$76.59 (CAD) 0
$0.00 (CAD) 0
$11.09 (CAD) 0
Ratios Ratio Average
PE Ratio 11.70
PB Ratio 1.69
PS Ratio 3.38
PCF Ratio 11.37
EV to EBITDA 0.57

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  BNS:TSE for the last 10 years was  1.69

We ran the Adjusted Book Value for  BNS:TSE and generated a book value of  $53.16 (CAD)
By multiplying these we get an adjusted valuation of  $89.91 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for BNS:TSE. The 8 analysts have a concensus valuation for BNS:TSE for 2019 of $84.63 (CAD).

BNS:TSE Bank of Nova Scotia

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
3 4 0 3.8889 Outperform 2018-11-27

Current Price: 72.13 CAD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 7.42 7.91
# EPS Analysts 8 7
Mean Revenue 30,992.80 32,515.30
# Revenue Analysts 6 4
Mean Target Price 84.63
Mean Cash Flow
Mean EBITDA
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Alibaba Group Holding (BABA:NYS) and Royal Bank of Canada (RY:TSE) Downgraded

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Downgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been downgraded by at least one analyst in the last few days.

Why Do Companies Get Downgraded?

Companies can get downgraded for a number of reasons but primarily due to reduced future earnings potential due to loss of contracts, faultering product lines, increasing costs relative to revenue or financial risk.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
BABA Alibaba Group Holding Ltd 6 1 0 0 0 0 4.8571 4.8750 Buy
RY Royal Bank of Canada 2 3 5 0 0 0 3.7000 3.7273 Outperform
ACN Accenture PLC 6 0 3 1 0 0 4.1000 4.1818 Outperform
LFC China Life Insurance Co Ltd 0 1 1 0 1 0 2.6667 3.3333 Hold
BNS Bank of Nova Scotia 3 2 4 0 0 0 3.8889 3.9000 Outperform
RHT Red Hat Inc 4 0 4 0 0 0 4.0000 4.2500 Outperform
TSS Total System Services Inc 3 0 4 0 0 0 3.8571 4.0000 Outperform
NOV National Oilwell Varco Inc 2 0 6 0 1 0 3.2222 3.5000 Hold
MHK Mohawk Industries Inc 5 1 2 0 0 0 4.3750 4.5000 Outperform
ENLK EnLink Midstream Partners LP 1 0 2 0 0 0 3.6667 4.3333 Outperform
COR CoreSite Realty Corp 0 1 2 0 0 0 3.3333 3.6667 Hold
VIPS Vipshop Holdings Ltd 1 0 2 0 0 0 3.6667 4.0000 Outperform
POL PolyOne Corp 3 0 3 0 0 0 4.0000 4.1667 Outperform
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
RY Royal Bank of Canada 2 3 5 0 0 0 3.7000 3.7273 Outperform
BNS Bank of Nova Scotia 3 2 4 0 0 0 3.8889 3.9000 Outperform
PKI Parkland Fuel Corp 4 2 1 0 0 0 4.4286 4.5000 Outperform
IIP.UN InterRent Real Estate Investment Trust 4 7 2 0 0 0 4.1538 4.2308 Outperform
SIA Sienna Senior Living Inc 4 0 5 0 0 0 3.8889 4.0000 Outperform
TV Trevali Mining Corp 5 6 0 0 0 0 4.4545 4.5455 Outperform
RME Rocky Mountain Dealerships Inc 1 2 3 0 0 0 3.6667 3.8000 Outperform
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
ZION Zions Bancorp NA 4 0 4 0 0 0 4.0000 4.1250 Outperform
NANO Nanometrics Inc 1 0 1 0 0 0 4.0000 5.0000 Outperform
SNDX Syndax Pharmaceuticals Inc 1 0 1 0 0 0 4.0000 5.0000 Outperform

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

BABA:NYS Alibaba Group Holding

http://www.alibabagroup.com
Alibaba Group Holding has 86833 employees and is headquartered in Hong Kong.
Alibaba Group Holding Ltd is an online and mobile commerce company. It operates China’s most popular online marketplaces such as Taobao (C2C), Tmall (B2C), and Juhuasuan. It also engages in advertising, digital media, cloud computing, and other.

RY:TSE Royal Bank of Canada

http://www.rbc.com
Royal Bank of Canada has 82236 employees and is headquartered in Canada.
Royal Bank of Canada is one of the largest Canadian banks. It provides diversified financial services, personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services worldwide.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Bank of Nova Scotia (BNS:TSE) and Suncor Energy (SU:TSE) Are Undervalued

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/TopPicks.aspx.

Undervalued Stocks on TSE

Today we are looking at companies that are considered undervalued based on the Analyst data in the StockCalc database.

In the table below we can see the close price and target price for these companies along with the number of analysts covering the stock. We also have included the fiscal year for the target price as sometimes these analyst targets are not for the current or even the next fiscal year.

There can be a number of reasons why a company would be on this list. What is particularly interesting are companies with a large analyst following that make this list. We need to dig deeper into these companies to understand why the difference in price versus target.

Today’s Data on TSE

Today’s data is for companies listed on the Toronto Stock Exchange.

Symbol Name Target Year Close Price Target Price Mean Currency Target Price # of Estimates
BNS Bank of Nova Scotia 2019 71.170000 85.6111 CAD 9
SU Suncor Energy Inc 2019 46.850000 62.4000 CAD 15
CM Canadian Imperial Bank of Commerce 2019 115.740000 135.3750 CAD 8
CNQ Canadian Natural Resources Ltd 2019 37.170000 57.8125 CAD 16
CP Canadian Pacific Railway Ltd 2019 261.110000 317.6862 CAD 13
TECK.B Teck Resources Ltd 2019 30.610000 45.1111 CAD 9
WN George Weston Ltd 2019 92.020000 115.3333 CAD 3
CTC.A Canadian Tire Corp Ltd 2019 150.430000 191.4444 CAD 9
CCL.A CCL Industries Inc 2019 55.000000 72.6875 CAD 8
CCL.B CCL Industries Inc 2019 55.830000 72.6875 CAD 8
TSGI The Stars Group Inc 2019 30.520000 52.6000 CAD 5
SNC SNC-Lavalin Group Inc 2019 46.910000 63.8182 CAD 11
VET Vermilion Energy Inc 2019 37.990000 56.2083 CAD 12
DOO BRP Inc 2019 54.480000 75.5000 CAD 8
IAG Industrial Alliance Insurance and Financial Services Inc 2019 47.400000 63.2222 CAD 9
WFT West Fraser Timber Co.Ltd 2019 66.850000 92.3333 CAD 6
LNR Linamar Corp 2019 53.030000 81.8333 CAD 6
PBH Premium Brands Holdings Corp 2019 92.700000 127.7500 CAD 10
MAXR Maxar Technologies Ltd 2019 40.730000 73.8028 CAD 10
MRC Morguard Corp 2019 175.060000 205.0000 CAD 2
LAS.A Lassonde Industries Inc 2019 238.770000 277.5000 CAD 2
CGO Cogeco Inc 2019 63.090000 87.5000 CAD 2
EQB Equitable Group Inc 2019 61.180000 75.8571 CAD 7
GSY goeasy Ltd 2019 45.500000 64.4000 CAD 5
TRIL Trillium Therapeutics Inc 2019 4.880000 19.4329 CAD 1

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

BNS:TSE Bank of Nova Scotia

http://www.scotiabank.com
Bank of Nova Scotia has 89809 employees and is headquartered in Canada.
Bank of Nova Scotia is an international bank and a financial service provider. The company provides personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets services.

SU:TSE Suncor Energy

http://www.suncor.com
Suncor Energy has 12381 employees and is headquartered in Canada.
Suncor Energy Inc is a Canadian integrated energy company. It operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, product marketing and a renewable energy portfolio.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.