* Note: Prices are in Million (M) USD.
Description:
KeyBank, the primary subsidiary of KeyCorp, is a regional bank headquartered in Cleveland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,766 M
Debt : $14,837 M
EBITDA : $162 M
Net Debt (Debt - Cash): $13,071 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
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: 12.10
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: $1,596 M
Average Revenue: $6,342 M
Revenue Converted To Free Cash Flow (%): 25.2%
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): $9,055 M
Revenue 4 Years Ago (2020-12-31): $7,141 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $950 M
Share Count 5 Years Ago (2020-12-31): $975 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): $1.76
Trailing 12-Month Earnings Per Share (EPS): $1.44
Average Earnings Per Share (EPS): $1.60
Dividend Per Share (DPS): $1
Payout Ratio: 51%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 4, 4 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: 7.0%
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: $19
52-Week Low: $13
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: $19,781 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 26 points to above KeyCorp (KEY) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
30.13 (>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 (12.55)
× EPS ($1.60) = $20.08.
Last 18 Years Avg PE 12.55, Fair Value PE 15, Industry Based PE 13, Growth Based PE 5, RCFC Based PE 30.13, ROE Based PE 15.63, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 15.48. Value-Trades has assined P/E value 15.48. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.60025.
The fair value of KeyCorp (KEY) stock should be (15.48 x $1.60025) = $24.78.
