LOW VALUATION IN BANK OF NOVA SCOTIA (BNS-T) AT $69.83

November 20, 2018
LOW VALUATION IN BANK OF NOVA SCOTIA (BNS-T) AT $69.83
REASONING: Banks have historically been the most consistent wealth creators among publicly
traded stocks. We waited patiently for a correction in Canadian bank stocks and now we’re there.
With a PE of 10X and a 4.88% dividend, we believe that this is a good long term entry point. In
addition, rising interest rates usually help to raise their net interest margins (NIM). This bank was
only marginally cheaper during the credit crisis in 2008 and the late 2015. The Purple Chips 12 –
18 month target is $85.00.
ABOUT: The Bank of Nova Scotia is an international bank and financial services provider in North
America, Latin America, the Caribbean and Central America, and Asia-Pacific. Its segments include
Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small
business, commercial and wealth management customers in Canada; International Banking, which provides
a range of financial products, solutions and advice to retail and commercial customers in select regions
outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking,
capital markets and transaction banking solutions, and Other, which represents smaller operating segments,
including Group Treasury.