* Note: Prices are in Million (M) USD.
Description:
Fifth Third Bank is a bank headquartered in Cincinnati, Ohio, at Fifth Third Center. It is the principal subsidiary of Fifth Third Bancorp, a diversified bank holding company.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,014 M
Debt : $18,972 M
EBITDA : $0 M
Net Debt (Debt - Cash): $15,958 M
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - regional - us
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.01
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $2,159 M
Average Revenue: $7,760 M
Revenue Converted To Free Cash Flow (%): 27.8%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $13,049 M
Revenue 4 Years Ago (2020-12-31): $8,033 M
Last 5 Years Average Revenue Growth: 12%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $687 M
Share Count 5 Years Ago (2020-12-31): $720 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.06
Trailing 12-Month Earnings Per Share (EPS): $3.54
Average Earnings Per Share (EPS): $3.80
Dividend Per Share (DPS): $1
Payout Ratio: 39%
Dividend Yield: 4%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 9.6%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $46
52-Week Low: $32
Threshold Price (15% Above 52-Week Low): $37
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $27,561 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Fifth Third Bancorp (FITB) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
32.26 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 19 Years Avg P/E (13.08)
× EPS ($3.80) = $49.68.
Last 19 Years Avg PE 13.08, Fair Value PE 15, Industry Based PE 13, Growth Based PE 12, RCFC Based PE 32.26, ROE Based PE 17.7, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.16. Value-Trades has assined P/E value 17.16. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.7981.
The fair value of Fifth Third Bancorp (FITB) stock should be (17.16 x $3.7981) = $65.18.
