Regions Financial Corporation

NYSE:RF Stock Report

Mkt Cap: US$21.9b

We’ve recently updated our valuation analysis.

Regions Financial Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RF 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 Ratio4.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13x
CFG Citizens Financial Group
10.9x8.0%US$21.3b
HBAN Huntington Bancshares
10.2x1.9%US$21.7b
FRC First Republic Bank
17.1x11.8%US$25.8b
MTB M&T Bank
13.9x8.6%US$26.2b
RF Regions Financial
10.2x2.4%US$21.9b

Price-To-Earnings vs Peers: RF is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (13x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.2%
n/an/an/a

Price-To-Earnings vs Industry: RF is expensive based on its Price-To-Earnings Ratio (10.2x) compared to the US Banks industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is RF'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.

RF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.2x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: RF is good value based on its Price-To-Earnings Ratio (10.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).


Share Price vs Fair Value

What is the Fair Price of RF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RF ($23.4) is trading below our estimate of fair value ($47.1)

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


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 RF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$23.40
US$25.06
+7.1%
8.6%US$30.00US$22.00n/a24
Jan ’24US$21.56
US$24.52
+13.7%
7.7%US$28.00US$22.00n/a25
Dec ’23US$22.99
US$24.44
+6.3%
7.5%US$28.00US$22.00n/a24
Nov ’23US$22.30
US$23.87
+7.0%
9.9%US$28.00US$17.85n/a24
Oct ’23US$20.07
US$24.66
+22.9%
8.9%US$30.00US$20.00n/a24
Sep ’23US$21.38
US$24.49
+14.6%
9.2%US$30.00US$20.00n/a24
Aug ’23US$21.12
US$24.28
+15.0%
9.7%US$30.00US$20.00n/a24
Jul ’23US$19.03
US$24.76
+30.1%
10.7%US$30.00US$20.00n/a24
Jun ’23US$21.61
US$25.23
+16.7%
9.9%US$30.00US$20.00n/a24
May ’23US$20.72
US$25.60
+23.6%
9.0%US$30.00US$21.00n/a24
Apr ’23US$21.47
US$26.62
+24.0%
8.9%US$30.00US$21.00n/a24
Mar ’23US$22.11
US$26.68
+20.7%
9.6%US$31.00US$21.00n/a24
Feb ’23US$23.60
US$26.31
+11.5%
9.7%US$30.00US$20.00n/a24
Jan ’23US$21.80
US$25.95
+19.1%
9.8%US$30.00US$20.00US$21.5623
Dec ’22US$22.15
US$25.74
+16.2%
9.5%US$30.00US$20.00US$22.9923
Nov ’22US$24.15
US$25.18
+4.3%
9.5%US$29.00US$20.00US$22.3023
Oct ’22US$21.74
US$22.65
+4.2%
10.5%US$28.00US$18.00US$20.0723
Sep ’22US$20.13
US$22.52
+11.9%
10.0%US$28.00US$18.00US$21.3823
Aug ’22US$19.25
US$22.64
+17.6%
10.6%US$28.00US$18.00US$21.1223
Jul ’22US$20.43
US$23.45
+14.8%
7.8%US$25.90US$18.00US$19.0324
Jun ’22US$23.62
US$23.25
-1.6%
7.9%US$25.90US$18.00US$21.6124
May ’22US$21.80
US$22.95
+5.3%
8.6%US$25.00US$18.00US$20.7226
Apr ’22US$21.06
US$21.69
+3.0%
12.3%US$25.00US$15.00US$21.4726
Mar ’22US$21.32
US$20.27
-4.9%
11.3%US$25.00US$15.00US$22.1126
Feb ’22US$17.32
US$19.59
+13.1%
9.1%US$23.00US$15.00US$23.6026
Jan ’22US$16.12
US$16.65
+3.3%
12.0%US$22.00US$14.00US$21.8026

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


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