First Horizon (FHN): Revisiting Valuation After a Quiet but Steady Share Price Rebound

First Horizon (FHN) has been quietly grinding higher, with the stock up about 2% in the past day, 4% this week, and roughly 12% over the past month as investors revisit regional banks.

See our latest analysis for First Horizon.

Zooming out, First Horizon’s share price has climbed steadily this year, with a strong year to date share price return and a solid one year total shareholder return suggesting momentum is quietly rebuilding as investors reassess regional bank risk and growth potential.

If First Horizon’s rebound has you rethinking regional bank risk, it could be a good moment to widen your net and explore fast growing stocks with high insider ownership.

With shares trading just below analysts’ targets but still at a notable intrinsic discount, the key question now is whether First Horizon remains undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative Narrative: 3.2% Undervalued

Compared with the last close at $24.43, the most followed narrative places First Horizon’s fair value only slightly higher, implying a modest upside rooted in long term assumptions rather than hype.

The diversified business model, offering countercyclical revenue support, may shield earnings from macroeconomic volatility and ensure a steady revenue stream across various interest rate environments.

Read the complete narrative.

Want to see how a steady revenue engine, resilient margins, and a richer future earnings multiple all fit together into that fair value? The key levers, and how much weight they carry, are only clear when you unpack the full narrative behind those revenue, earnings, and buyback projections.

Result: Fair Value of $25.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on a benign macro backdrop, because higher credit losses or a deeper downturn in loan demand could quickly undermine those upside assumptions.

Find out about the key risks to this First Horizon narrative.

Another Lens on Valuation

On earnings, First Horizon looks less forgiving, trading at about 14.1 times profits versus 11.9 times for the US banks industry and a fair ratio of 12.8 times. That richer tag narrows the margin of safety and raises the question of how much execution risk investors are really being paid for.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own First Horizon Narrative

If you are not fully aligned with this view or simply prefer digging into the numbers yourself, you can quickly build a custom storyline in just a few minutes: Do it your way.

A great starting point for your First Horizon research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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