What is The Bank of Nova Scotia (BNS)'s PEG ratio?

The Bank of Nova Scotia (BNS) has a PEG ratio of 12.80 (Potentially Overvalued), based on a PE ratio of 12.0 and expected EPS growth of 0.9% (5-Year EPS CAGR).

Is BNS undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 12.80, The Bank of Nova Scotia (BNS) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/BNS.

The Bank of Nova Scotia (BNS) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

12.80

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

12.80

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$86.88

TTM EPS

$7.22

P/E Ratio

12.03

Growth Rate

0.9%

5-Year EPS CAGR

Sector

Financial Services

Banks - Diversified

Calculated

7/28/2026

7:27:41 PM

Peer Comparison

Sample Size

8 peers

Industry Median PEG

0.89

25th Percentile

0.74

75th Percentile

1.13

BNS PEG (12.80) vs Industry Median (0.89): 1335% premium

Symbol	Company	PEG	P/E	Growth	vs BNS
WFC	Wells Fargo & Company	0.17	12.6	72.4%	-99%
NU	Nu Holdings Ltd.	0.51	22.4	43.9%	-96%
CM	Canadian Imperial Bank of Commerce	0.74	11.7	15.9%	-94%
JPM	JPMorgan Chase & Co.	0.87	15.3	17.7%	-93%
BAC	Bank of America Corporation	0.92	14.3	15.6%	-93%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

The Bank of Nova Scotia (BNS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BNS

Compare with peers

Explore

The Bank of Nova Scotia (BNS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BNS

Compare with peers

Explore