* Note: Prices are in Million (M) USD.
Description:
Zions Bancorporation is a bank holding company headquartered in Salt Lake City, Utah.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $780 M
Debt : $7,042 M
EBITDA : $1,187 M
Net Debt (Debt - Cash): $6,262 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Financials
Industry: Banks - regional
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: 9.54
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: $772 M
Average Revenue: $3,036 M
Revenue Converted To Free Cash Flow (%): 25.4%
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): $4,993 M
Revenue 4 Years Ago (2020-12-31): $2,942 M
Last 5 Years Average Revenue Growth: 14%
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): $147 M
Share Count 5 Years Ago (2020-12-31): $166 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): $6.19
Trailing 12-Month Earnings Per Share (EPS): $5.93
Average Earnings Per Share (EPS): $6.06
Dividend Per Share (DPS): $2
Payout Ratio: 28%
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: 6.4%
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: $58
52-Week Low: $39
Threshold Price (15% Above 52-Week Low): $45
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: $8,002 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 26 points to above Zions Bancorporation (ZION) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
30.33 (>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 17 Years Avg P/E (15.18)
× EPS ($6.06) = $91.96.
Last 17 Years Avg PE 15.18, Fair Value PE 15, Industry Based PE 13, Growth Based PE 13, RCFC Based PE 30.33, ROE Based PE 15.13, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.96. Value-Trades has assined P/E value 16.96. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.0581.
The fair value of Zions Bancorporation (ZION) stock should be (16.96 x $6.0581) = $102.75.
