Regions Financial Valuation

Q: What is the Fair Price of RF * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RF * (MX$437) is trading below our estimate of [[fair value]] (MX$538.52)

Is RF * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RF * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RF * (MX$437) is trading below our estimate of fair value (MX$538.52)

Significantly Below Fair Value: RF * is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RF *?

Key metric: As RF * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RF *. This is calculated by dividing RF *'s market cap by their current earnings.
What is RF *'s PE Ratio?
PE Ratio	7.5x
Earnings	US$2.21b
Market Cap	US$16.64b

RF * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	-2.8x

Price to Earnings Ratio vs Peers

How does RF *'s PE Ratio compare to its peers?

The above table shows the PE ratio for RF * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	46x
R A Regional. de	6.1x	3.5%	Mex$39.6b
GFNORTE O Grupo Financiero Banorte. de	7.2x	4.1%	Mex$402.0b
GFINBUR O Grupo Financiero Inbursa. de	7.6x	3.8%	Mex$271.2b
ELEKTRA * Grupo Elektra. de	162.9x	n/a	Mex$209.5b
RF * Regions Financial	7.5x	-2.7%	Mex$16.6b

Price-To-Earnings vs Peers: RF * is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does RF *'s PE Ratio compare vs other companies in the South American Banks Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RF * is good value based on its Price-To-Earnings Ratio (7.5x) compared to the South American Banks industry average (9.2x).

Price to Earnings Ratio vs Fair Ratio

What is RF *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RF * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	8.6x

Price-To-Earnings vs Fair Ratio: RF * is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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