* Note: Prices are in Million (M) USD.
Description:
FNB Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small and medium-sized businesses. The company is headquartered in Pittsburgh, Pennsylvania.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,427 M
Debt : $4,319 M
EBITDA : $609 M
Net Debt (Debt - Cash): $1,892 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
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: 10.66
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: $321 M
Average Revenue: $1,001 M
Revenue Converted To Free Cash Flow (%): 32.1%
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): $2,568 M
Revenue 4 Years Ago (2020-12-31): $1,441 M
Last 5 Years Average Revenue Growth: 16%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $363 M
Share Count 5 Years Ago (2020-12-31): $325 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.69
Trailing 12-Month Earnings Per Share (EPS): $1.44
Average Earnings Per Share (EPS): $1.57
Dividend Per Share (DPS): $0
Payout Ratio: 31%
Dividend Yield: 3%
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: 7.6%
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: $17
52-Week Low: $11
Threshold Price (15% Above 52-Week Low): $12
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: $5,366 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above F.N.B. Corp (FNB) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
37.67 (>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 20 Years Avg P/E (13.74)
× EPS ($1.57) = $21.50.
Last 20 Years Avg PE 13.74, Fair Value PE 15, Industry Based PE 13, Growth Based PE 15, RCFC Based PE 37.67, ROE Based PE 16.09, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.23. Value-Trades has assined P/E value 18.23. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.565.
The fair value of F.N.B. Corp (FNB) stock should be (18.23 x $1.565) = $28.52.
