Fifth Third Bancorp

NasdaqGS:FITB Stock Report

Market Cap: US$31.5b

Fifth Third Bancorp Valuation

Is FITB 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 FITB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FITB ($46.82) is trading below our estimate of fair value ($81.39)

Significantly Below Fair Value: FITB is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FITB. This is calculated by dividing FITB's market cap by their current earnings.
What is FITB's PE Ratio?
PE Ratio15.3x
EarningsUS$2.07b
Market CapUS$31.51b

Price to Earnings Ratio vs Peers

How does FITB's PE Ratio compare to its peers?

The above table shows the PE ratio for FITB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.2x
BAP Credicorp
11.2x11.9%US$15.3b
PNC PNC Financial Services Group
17.3x12.9%US$82.4b
USB U.S. Bancorp
15.5x11.6%US$77.8b
CMA Comerica
16.8x10.9%US$9.1b
FITB Fifth Third Bancorp
15.2x8.1%US$31.5b

Price-To-Earnings vs Peers: FITB is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (15.2x).


Price to Earnings Ratio vs Industry

How does FITB's PE Ratio compare vs other companies in the US Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
FITB 15.3xIndustry Avg. 12.9xNo. of Companies79PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FITB is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the US Banks industry average (12.9x).


Price to Earnings Ratio vs Fair Ratio

What is FITB'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.

FITB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.3x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: FITB is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).


Analyst Price Targets

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

The above table shows the analyst FITB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$46.82
US$48.38
+3.3%
8.8%US$57.00US$40.00n/a20
Nov ’25US$43.14
US$47.31
+9.7%
8.6%US$53.00US$40.00n/a21
Oct ’25US$41.86
US$43.93
+4.9%
9.0%US$51.00US$35.00n/a21
Sep ’25US$42.69
US$43.50
+1.9%
8.0%US$50.00US$35.00n/a22
Aug ’25US$40.73
US$43.04
+5.7%
8.2%US$50.00US$35.00n/a22
Jul ’25US$36.27
US$40.48
+11.6%
6.1%US$44.00US$35.00n/a22
Jun ’25US$37.42
US$40.52
+8.3%
6.1%US$44.00US$35.00n/a22
May ’25US$37.10
US$40.19
+8.3%
5.8%US$44.00US$35.00n/a21
Apr ’25US$36.70
US$39.23
+6.9%
7.2%US$43.00US$32.00n/a21
Mar ’25US$34.37
US$38.57
+12.2%
7.4%US$43.00US$32.00n/a21
Feb ’25US$33.78
US$38.21
+13.1%
9.0%US$43.00US$29.00n/a21
Jan ’25US$34.49
US$33.76
-2.1%
11.8%US$40.50US$26.00n/a21
Dec ’24US$30.58
US$30.79
+0.7%
8.2%US$35.00US$26.00n/a21
Nov ’24US$23.65
US$30.73
+30.0%
8.4%US$35.00US$26.00US$43.1421
Oct ’24US$25.33
US$31.71
+25.2%
7.4%US$35.00US$26.50US$41.8621
Sep ’24US$27.05
US$31.98
+18.2%
7.5%US$35.00US$26.50US$42.6921
Aug ’24US$28.81
US$32.03
+11.2%
9.1%US$39.00US$27.00US$40.7321
Jul ’24US$26.21
US$31.31
+19.5%
10.0%US$39.00US$27.00US$36.2721
Jun ’24US$24.79
US$32.24
+30.1%
10.2%US$40.00US$27.10US$37.4221
May ’24US$25.82
US$33.93
+31.4%
12.0%US$44.00US$29.00US$37.1021
Apr ’24US$26.64
US$38.60
+44.9%
9.0%US$47.00US$32.00US$36.7021
Mar ’24US$36.19
US$40.26
+11.3%
6.3%US$47.00US$37.00US$34.3721
Feb ’24US$36.78
US$39.88
+8.4%
7.0%US$47.00US$36.00US$33.7821
Jan ’24US$32.81
US$40.51
+23.5%
8.6%US$48.00US$35.00US$34.4921
Dec ’23US$35.77
US$40.84
+14.2%
8.2%US$48.00US$35.00US$30.5820
Nov ’23US$35.80
US$40.08
+12.0%
10.1%US$48.00US$33.07US$23.6520

Analyst Forecast: Target price is less than 20% higher than the current share price.


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