Fifth Third Bancorp

NasdaqGS:FITB Stock Report

Market Cap: US$25.2b

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 ($36.9) is trading below our estimate of fair value ($71.2)

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?

Other financial metrics that can be useful for relative valuation.

FITB 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.2x

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 Average14x
KEY KeyCorp
19x32.4%US$13.9b
BAP Credicorp
10.2x10.6%US$13.3b
USB U.S. Bancorp
13.7x12.1%US$64.1b
PNC PNC Financial Services Group
13x9.6%US$62.1b
FITB Fifth Third Bancorp
11.7x5.4%US$25.2b

Price-To-Earnings vs Peers: FITB is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (14x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FITB is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the US Banks industry average (9.6x).


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 Ratio11.7x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: FITB is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).


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$36.90
US$40.00
+8.4%
6.0%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$26.00n/a21
Oct ’24US$25.33
US$31.71
+25.2%
7.4%US$35.00US$26.50n/a21
Sep ’24US$27.05
US$31.98
+18.2%
7.5%US$35.00US$26.50n/a21
Aug ’24US$28.81
US$32.03
+11.2%
9.1%US$39.00US$27.00n/a21
Jul ’24US$26.21
US$31.31
+19.5%
10.0%US$39.00US$27.00n/a21
Jun ’24US$24.79
US$32.24
+30.1%
10.2%US$40.00US$27.10n/a21
May ’24US$25.82
US$33.93
+31.4%
12.0%US$44.00US$29.00n/a21
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
Oct ’23US$31.96
US$42.54
+33.1%
10.5%US$53.00US$37.00US$25.3320
Sep ’23US$33.84
US$42.89
+26.7%
10.2%US$53.00US$37.00US$27.0520
Aug ’23US$34.13
US$42.89
+25.7%
10.2%US$53.00US$37.00US$28.8120
Jul ’23US$33.84
US$46.13
+36.3%
10.9%US$57.00US$37.00US$26.2121
Jun ’23US$38.74
US$47.65
+23.0%
10.3%US$57.00US$37.00US$24.7921
May ’23US$37.53
US$48.80
+30.0%
8.8%US$57.00US$42.20US$25.8221
Apr ’23US$41.80
US$51.11
+22.3%
7.4%US$56.00US$43.00US$26.6421

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


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