Royal Bank of Canada (RY:TSE) and Brookfield Asset Mgmt (BAM.A:TSE) Upgraded

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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.

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
RY Royal Bank of Canada 3 5 3 0 0 0 4.0000 3.8182 Outperform
OXY Occidental Petroleum Corp 3 0 3 0 0 0 4.0000 3.8571 Outperform
BAM Brookfield Asset Management Inc 7 2 0 0 0 0 4.7778 4.7000 Buy
CXO Concho Resources Inc 4 0 3 0 0 0 4.1429 3.8571 Outperform
PXD Pioneer Natural Resources Co 7 1 1 0 0 0 4.6667 4.4444 Buy
APA Apache Corp 3 0 4 0 1 0 3.5000 3.2500 Hold
FBR Fibria Celulose SA 1 0 0 0 0 0 5.0000 3.0000 Buy
X United States Steel Corp 4 0 3 0 0 0 4.1429 3.8571 Outperform
SM SM Energy Co 1 0 2 0 0 0 3.6667 3.0000 Outperform
CPE Callon Petroleum Co 5 0 0 0 0 0 5.0000 4.6000 Buy
BCSF Bain Capital Specialty Finance Inc 1 0 0 0 0 0 5.0000 0.0000 Buy
CTK CooTek (Cayman) Inc 1 0 0 0 0 0 5.0000 0.0000 Buy
ATEN A10 Networks Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
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 3 5 3 0 0 0 4.0000 3.8182 Outperform
BAM.A Brookfield Asset Management Inc 7 2 0 0 0 0 4.7778 4.7000 Buy
CRON Cronos Group Inc 1 2 1 0 0 0 4.0000 3.7500 Outperform
ARX ARC Resources Ltd 8 5 0 0 0 0 4.6154 4.4615 Buy
CJR.B Corus Entertainment Inc 4 0 5 0 0 0 3.8889 3.6667 Outperform
LUC Lucara Diamond Corp 3 1 0 0 0 0 4.7500 4.6000 Buy
CIA Champion Iron Ltd 1 1 0 0 0 0 4.5000 4.0000 Outperform
PIF Polaris Infrastructure Inc 1 4 0 0 0 0 4.2000 4.1667 Outperform
American Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
MCF Contango Oil & Gas Co 2 0 0 0 0 0 5.0000 4.3333 Buy
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
ICPT Intercept Pharmaceuticals Inc 3 1 1 0 0 0 4.4000 4.0000 Outperform
CRON Cronos Group Inc 1 2 1 0 0 0 4.0000 3.7500 Outperform
IFRX InflaRx NV 1 0 0 0 0 0 5.0000 0.0000 Buy
CONN Conn’s Inc 2 0 0 0 0 0 5.0000 4.0000 Buy
FRTA Forterra Inc 1 0 2 0 0 0 3.6667 3.5000 Outperform
BLNK Blink Charging Co 1 0 0 0 0 0 5.0000 0.0000 Buy
FTEK Fuel Tech Inc 1 0 0 0 0 0 5.0000 3.0000 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.

RY:TSE Royal Bank of Canada

http://www.rbc.com
Royal Bank of Canada has 81870 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.

BAM.A:TSE Brookfield Asset Mgmt

http://www.brookfield.com
Brookfield Asset Mgmt has 81200 employees and is headquartered in Canada.
Brookfield Asset Management Inc is an alternative asset management company focused on property, renewable energy, infrastructure and private equity.

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 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.


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.


Canadian Imperial Bank (CM:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Canadian Imperial Bank(CM: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
$112.46 (CAD) 29/11/2018

Weighted Valuation
$129.72 (CAD)

Overall Rating
Undervalued by 15.3%

Valuation Models Analyst Consensus: $133.50 (CAD)
(in order of importance) Comparables: $134.56 (CAD)
Multiples: $108.70 (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 (CM:TSE CAD)

Price 112.46
Range 111.41 – 115.17
52 week 110.11 – 124.59
Open 114.38
Vol / Avg. 3.23M/1.2M
Mkt cap 49.9B
P/E 9.85
Div/yield 5.32/0.05
EPS 11.65
Shares 443.7M
Beta 1.00

Company Description

Canadian Imperial Bank of Commerce is Canada’s fifth-largest bank, operating three business segments: retail and business banking, wealth management, and capital markets. It serves approximately 11 million personal banking and business customers, primarily in Canada.

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 CM:TSE

Using a discounted cash flow model we generated an intrinsic value of $152.86 (CAD) for CM:TSE

Sensitivity Analysis

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

CM:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $152.86 1% 5% 1% 5%
WACC (or Ke) 10.66 $176.23 $134.90
Terminal Growth Rate 3.00 $137.29 $173.12
Tax Rate 0.21 $162.80 $142.93
Cash Flow 7,496,377,181 $144.94 $160.79
Capital Expenditures -146,200,000 $152.73 $153.00
Long Term Debt 0 $152.86 $152.86

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

Comparables Model

Using similar companies and price based ratios we generated a valuation of $134.56 (CAD) for CM:TSE. We also generated a valuation of $103.46 (CAD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:NYS) and Royal Bank of Canada (RY:NYS).

Company CM:TSE End Date Value
Earnings/Share $11.65 (CAD)
Book Value/Share $72.42 (CAD)
Sales/Share $39.56 (CAD)
Cash Flow/Share $29.51 (CAD)
EBITDA/Share $31.82 (CAD)
Price Based on Comps Adjustment Factor (%)
$146.34 (CAD) -58.3
$125.73 (CAD) 47.1
$120.39 (CAD) 23.8
$156.35 (CAD) -13.5
$0.00 (CAD) -81.2
CM:TSE Ratios Used Average Values BMO:NYS RY:NYS
9.95 PE Ratio 12.56 13.25 11.87
1.57 PB Ratio 1.74 1.55 1.92
2.87 PS Ratio 3.04 2.81 3.28
3.85 PCF Ratio 5.61 6.56 4.66
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $108.70 (CAD) for CM:TSE

Company CM:TSE End Date Value
Earnings/Share $11.65 (CAD)
Book Value/Share $72.42 (CAD)
Sales/Share $39.56 (CAD)
Cash Flow/Share $29.51 (CAD)
EBITDA/Share $31.82 (CAD)
Price Based on Comps Adjustment Factor
$123.16 (CAD) 0
$136.53 (CAD) 0
$112.84 (CAD) 0
$107.00 (CAD) 0
$63.98 (CAD) 0
Ratios Ratio Average
PE Ratio 10.57
PB Ratio 1.89
PS Ratio 2.85
PCF Ratio 3.63
EV to EBITDA 2.01

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CM:TSE for the last 10 years was  1.89

We ran the Adjusted Book Value for  CM:TSE and generated a book value of  $78.91 (CAD)
By multiplying these we get an adjusted valuation of  $149.05 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for CM:TSE. The 8 analysts have a concensus valuation for CM:TSE for 2019 of $133.50 (CAD).

CM:TSE Canadian Imperial Bank

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 5 0 3.6667 Outperform 2018-11-28

Current Price: 112.46 CAD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 12.70 13.32
# EPS Analysts 8 7
Mean Revenue 18,799.00 19,797.00
# Revenue Analysts 6 4
Mean Target Price 133.50
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.


Royal Bank of Canada (RY:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Royal Bank of Canada(RY: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
$97.82 (CAD) 29/11/2018

Weighted Valuation
$112.89 (CAD)

Overall Rating
Undervalued by 15.4%

Valuation Models Analyst Consensus: $110.88 (CAD)
(in order of importance) Adjusted Book Value: $116.80 (CAD)
Discounted Cash Flow: $111.12 (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 (RY:TSE CAD)

Price 97.82
Range 97.41 – 98.74
52 week 93.62 – 108.05
Open 98.00
Vol / Avg. 2.66M/2.33M
Mkt cap 141.15B
P/E 11.70
Div/yield 3.77/0.04
EPS 8.36
Shares 1.44B
Beta 0.98

Company Description

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the U.S. and other countries.

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 RY:TSE

Using a discounted cash flow model we generated an intrinsic value of $111.12 (CAD) for RY:TSE

Sensitivity Analysis

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

RY:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $111.12 1% 5% 1% 5%
WACC (or Ke) 10.33 $129.52 $97.13
Terminal Growth Rate 3.00 $98.90 $127.19
Tax Rate 0.21 $118.65 $103.58
Cash Flow 18,104,671,839 $104.94 $117.30
Capital Expenditures -1,037,000,000 $110.80 $111.43
Long Term Debt 0 $111.12 $111.12

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

Comparables Model

Using similar companies and price based ratios we generated a valuation of $87.03 (CAD) for RY:TSE. We also generated a valuation of $83.02 (CAD) using other metrics and comparables.
The comparable companies were Bank of Montreal (BMO:TSE) and The Toronto-Dominion Bank (TD:TSE).

Company RY:TSE End Date Value
Earnings/Share $8.36 (CAD)
Book Value/Share $49.68 (CAD)
Sales/Share $29.14 (CAD)
Cash Flow/Share $20.52 (CAD)
EBITDA/Share $21.83 (CAD)
Price Based on Comps Adjustment Factor (%)
$107.78 (CAD) -55.5
$84.72 (CAD) 53.1
$93.17 (CAD) 26.6
$112.92 (CAD) -56.0
$0.00 (CAD) -60.2
RY:TSE Ratios Used Average Values BMO:TSE TD:TSE
11.92 PE Ratio 12.89 13.30 12.48
1.93 PB Ratio 1.71 1.55 1.86
3.29 PS Ratio 3.20 2.82 3.57
4.67 PCF Ratio 5.81 6.59 5.03
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $82.09 (CAD) for RY:TSE

Company RY:TSE End Date Value
Earnings/Share $8.36 (CAD)
Book Value/Share $49.68 (CAD)
Sales/Share $29.14 (CAD)
Cash Flow/Share $20.52 (CAD)
EBITDA/Share $21.83 (CAD)
Price Based on Comps Adjustment Factor
$105.29 (CAD) 0
$104.64 (CAD) 0
$99.23 (CAD) 0
$97.38 (CAD) 0
$3.91 (CAD) 0
Ratios Ratio Average
PE Ratio 12.60
PB Ratio 2.11
PS Ratio 3.40
PCF Ratio 4.75
EV to EBITDA 0.18

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  RY:TSE for the last 10 years was  2.10

We ran the Adjusted Book Value for  RY:TSE and generated a book value of  $55.51 (CAD)
By multiplying these we get an adjusted valuation of  $116.80 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for RY:TSE. The 8 analysts have a concensus valuation for RY:TSE for 2019 of $110.88 (CAD).

RY:TSE Royal Bank of Canada

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 5 0 3.7000 Outperform 2018-11-28

Current Price: 97.82 CAD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 9.03 9.59
# EPS Analysts 8 7
Mean Revenue 44,294.70 46,824.80
# Revenue Analysts 6 4
Mean Target Price 110.88
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.


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.


George Weston (WN:TSE) and Canadian Tire Corp (CTC.A:TSE) Are Undervalued

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.

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
RY Royal Bank of Canada 2019 95.370000 111.7500 CAD 8
SU Suncor Energy Inc 2019 43.680000 62.4000 CAD 15
BMO Bank of Montreal 2019 99.050000 116.5000 CAD 8
CM Canadian Imperial Bank of Commerce 2019 114.280000 135.1250 CAD 8
CNQ Canadian Natural Resources Ltd 2019 35.700000 57.4375 CAD 16
CP Canadian Pacific Railway Ltd 2019 275.900000 318.4630 CAD 13
WN George Weston Ltd 2019 95.000000 112.0000 CAD 4
CTC.A Canadian Tire Corp Ltd 2019 152.680000 188.3333 CAD 9
SNC SNC-Lavalin Group Inc 2019 46.190000 62.3636 CAD 11
TSGI The Stars Group Inc 2019 23.330000 39.9000 CAD 5
WFT West Fraser Timber Co.Ltd 2019 69.520000 87.3333 CAD 6
VET Vermilion Energy Inc 2019 33.110000 52.6667 CAD 12
DOO BRP Inc 2019 48.110000 75.5000 CAD 8
X TMX Group Ltd 2019 79.250000 97.5000 CAD 6
CCA Cogeco Communications Inc 2019 64.110000 81.6111 CAD 9
LNR Linamar Corp 2019 48.630000 77.0000 CAD 6
PBH Premium Brands Holdings Corp 2019 70.640000 98.9000 CAD 10
BYD.UN Boyd Group Income Fund 2019 109.630000 130.8750 CAD 12
MRC Morguard Corp 2019 180.830000 205.0000 CAD 2
ENGH Enghouse Systems Ltd 2019 71.900000 88.5000 CAD 4
LAS.A Lassonde Industries Inc 2019 210.510000 245.0000 CAD 2
CGO Cogeco Inc 2019 61.500000 88.0000 CAD 2
AFN Ag Growth International Inc 2019 53.310000 71.2500 CAD 8
GSY goeasy Ltd 2019 39.090000 62.6667 CAD 6
TRIL Trillium Therapeutics Inc 2019 3.690000 19.7439 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.

WN:TSE George Weston

http://www.weston.ca
George Weston has 198000 employees and is headquartered in Canada.
George Weston Limited is in food and drug retail business through its control of Loblaw Companies Ltd which provides with pharmacy, health, apparel, general merchandise, banking, credit card services; and Weston Foods offering fresh and frozen products.

CTC.A:TSE Canadian Tire Corp

http://www.canadiantire.ca
Canadian Tire Corp has 29710 employees and is headquartered in Canada.
Canadian Tire Corp Ltd operates a nationwide store network that sells home goods, sporting equipment, apparel, footwear, automotive parts and accessories. Its stores are branded under the name Mark’s, Sport Chek, Atmosphere, and PartSource monikers.

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.