* Note: Prices are in Million (M) USD.
Description:
Huntington Bancshares Incorporated is a bank holding company headquartered in Columbus, Ohio.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $10,947 M
Debt : $18,043 M
EBITDA : $3,082 M
Net Debt (Debt - Cash): $7,096 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: 11.68
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: $1,309 M
Average Revenue: $4,731 M
Revenue Converted To Free Cash Flow (%): 27.7%
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): $11,961 M
Revenue 4 Years Ago (2020-12-31): $5,238 M
Last 5 Years Average Revenue Growth: 26%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,476 M
Share Count 5 Years Ago (2020-12-31): $1,033 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): $1.62
Trailing 12-Month Earnings Per Share (EPS): $1.43
Average Earnings Per Share (EPS): $1.53
Dividend Per Share (DPS): $1
Payout Ratio: 41%
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: 6.0%
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: $18
52-Week Low: $12
Threshold Price (15% Above 52-Week Low): $14
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: $24,174 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 Huntington Bancshares Incorporated (HBAN) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
32.13 (>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 18 Years Avg P/E (15.38)
× EPS ($1.53) = $23.45.
Last 18 Years Avg PE 15.38, Fair Value PE 15, Industry Based PE 13, Growth Based PE 25, RCFC Based PE 32.13, ROE Based PE 14.77, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.91. Value-Trades has assined P/E value 18.91. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.525.
The fair value of Huntington Bancshares Incorporated (HBAN) stock should be (18.91 x $1.525) = $28.84.
