First Horizon Corporation

NYSE:FHN Stock Report

Market Cap: US$11.1b

First Horizon Valuation

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

Below Fair Value: FHN ($20.93) is trading below our estimate of fair value ($37.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FHN. This is calculated by dividing FHN's market cap by their current earnings.
What is FHN's PE Ratio?
PE Ratio14.7x
EarningsUS$757.00m
Market CapUS$11.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FHN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
ZION Zions Bancorporation National Association
13.9x6.3%US$8.9b
SNV Synovus Financial
25.4x32.9%US$8.2b
CBSH Commerce Bancshares
19.1x0.3%US$9.5b
PB Prosperity Bancshares
18.1x13.2%US$8.0b
FHN First Horizon
14.7x7.5%US$11.1b

Price-To-Earnings vs Peers: FHN is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (19.1x).

Price to Earnings Ratio vs Industry

How does FHN'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
FHN 14.7xIndustry Avg. 13.2xNo. of Companies91PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FHN is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the US Banks industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is FHN'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.

FHN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: FHN is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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 FHN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$20.93
US$19.70
-5.9%
8.0%US$23.00US$17.00n/a15
Nov ’25US$17.19
US$19.23
+11.9%
5.2%US$21.00US$17.00n/a15
Oct ’25US$14.92
US$18.07
+21.1%
5.6%US$19.00US$16.00n/a15
Sep ’25US$16.59
US$18.38
+10.8%
6.0%US$20.00US$16.00n/a16
Aug ’25US$15.95
US$18.38
+15.2%
6.0%US$20.00US$16.00n/a16
Jul ’25US$15.71
US$17.56
+11.8%
5.9%US$19.00US$15.50n/a16
Jun ’25US$15.84
US$17.47
+10.3%
5.6%US$19.00US$15.50n/a16
May ’25US$15.06
US$17.30
+14.9%
5.0%US$18.50US$15.50n/a15
Apr ’25US$14.96
US$16.57
+10.7%
7.1%US$18.50US$14.00n/a15
Mar ’25US$14.04
US$16.29
+16.0%
6.0%US$18.00US$14.00n/a14
Feb ’25US$13.90
US$16.21
+16.6%
5.4%US$17.00US$14.00n/a14
Jan ’25US$14.16
US$14.00
-1.1%
8.6%US$16.00US$11.50n/a14
Dec ’24US$13.34
US$13.02
-2.4%
6.2%US$14.00US$11.50n/a14
Nov ’24US$10.78
US$12.67
+17.6%
5.1%US$13.50US$11.50US$17.1913
Oct ’24US$11.02
US$13.98
+26.9%
6.5%US$16.00US$12.00US$14.9212
Sep ’24US$12.75
US$15.21
+19.3%
18.2%US$24.00US$13.50US$16.5912
Aug ’24US$13.33
US$15.08
+13.2%
18.2%US$24.00US$14.00US$15.9512
Jul ’24US$11.27
US$14.28
+26.7%
24.0%US$24.00US$11.25US$15.7110
Jun ’24US$10.45
US$16.00
+53.1%
31.9%US$25.00US$11.00US$15.848
May ’24US$17.52
US$23.14
+32.1%
11.6%US$25.00US$18.00US$15.067
Apr ’24US$17.78
US$24.75
+39.2%
1.7%US$25.00US$24.00US$14.968
Mar ’24US$22.14
US$24.86
+12.3%
1.4%US$25.00US$24.00US$14.047
Feb ’24US$24.75
US$24.86
+0.4%
1.4%US$25.00US$24.00US$13.907
Dec ’23US$24.70
US$24.86
+0.6%
1.4%US$25.00US$24.00US$13.347
Nov ’23US$24.41
US$24.86
+1.8%
1.4%US$25.00US$24.00US$10.787

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

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