Q: After its recent recovery, BNS's dividend yield is back in its historical average range, a bit above 4%. But its PE seems to be much higher than the historical range. Do you know why this is the case, and whether it should be a concern for investors? Thanks.
5i Research Answer:
BNS is certainly on the higher side of historical P/E, but it has been higher than 13x before (12.7x now). Price has risen faster than earnings. The whole sector has done well. We would not call it a major concern, but something to be watched. As long as credit losses remain OK, we would not expect big problems here.