TFS Financial Corporation

NasdaqGS:TFSL Stock Report

Market Cap: US$4.0b

TFS Financial Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: TFSL ($14.52) is trading above our estimate of fair value ($2.45)

Significantly Below Fair Value: TFSL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TFSL. This is calculated by dividing TFSL's market cap by their current earnings.
What is TFSL's PE Ratio?
PE Ratio51.7x
EarningsUS$78.16m
Market CapUS$4.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TFSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
UCB United Community Banks
22.3x18.8%US$4.1b
FULT Fulton Financial
14.3x13.4%US$3.9b
CBU Community Financial System
22.5x17.9%US$3.7b
CATY Cathay General Bancorp
13x4.5%US$3.8b
TFSL TFS Financial
51.7x5.1%US$4.0b

Price-To-Earnings vs Peers: TFSL is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does TFSL'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
TFSL 51.7xIndustry Avg. 13.2xNo. of Companies91PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TFSL is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the US Banks industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is TFSL'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.

TFSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.7x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: TFSL is expensive based on its Price-To-Earnings Ratio (51.7x) 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 TFSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$14.52
US$14.50
-0.1%
3.4%US$15.00US$14.00n/a2
Jul ’25US$12.49
US$14.00
+12.1%
7.1%US$15.00US$13.00n/a2
Jun ’25US$13.18
US$14.50
+10.0%
3.4%US$15.00US$14.00n/a2
May ’25US$12.70
US$14.50
+14.2%
3.4%US$15.00US$14.00n/a2
Apr ’25US$12.37
US$14.50
+17.2%
3.4%US$15.00US$14.00n/a2
Mar ’25US$12.84
US$14.50
+12.9%
3.4%US$15.00US$14.00n/a2
Oct ’24US$11.82
US$14.25
+20.6%
5.3%US$15.00US$13.50US$12.582
Sep ’24US$13.81
US$14.75
+6.8%
1.7%US$15.00US$14.50US$13.582
Aug ’24US$14.74
US$14.75
+0.07%
1.7%US$15.00US$14.50US$13.002
Jul ’24US$12.57
US$14.13
+12.4%
0.9%US$14.25US$14.00US$12.492
Jun ’24US$11.70
US$14.13
+20.7%
0.9%US$14.25US$14.00US$13.182
May ’24US$12.00
US$15.50
+29.2%
3.2%US$16.00US$15.00US$12.702
Jan ’24US$14.41
US$17.50
+21.4%
8.6%US$19.00US$16.00US$14.692
Dec ’23US$14.07
US$17.50
+24.4%
8.6%US$19.00US$16.00US$13.492
Nov ’23US$14.01
US$17.50
+24.9%
8.6%US$19.00US$16.00US$12.092

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Bank Negara Indonesia (Persero)

Rp180.3t

Provides various banking products and services in Indonesia, New York, Europe, and Asia.

PBNN.F

Rp0.40

7D

38.9%

1Y

24.2%

Grupo Financiero Banorte. de

Mex$402.5b

Through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally.

GBOO.F

Mex$7.07

7D

-2.4%

1Y

-27.6%

BNP Paribas

€64.2b

Provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.

BNPQ.F

€60.20

7D

-6.4%

1Y

-5.2%