We’ve recently updated our valuation analysis.

Truist Financial Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 TFC?

Other financial metrics that can be useful for relative valuation.

TFC 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 Ratio1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.2x
PNC PNC Financial Services Group
11.3x4.3%US$62.6b
FRC First Republic Bank
14x10.3%US$21.4b
HBAN Huntington Bancshares
11.2x3.9%US$21.2b
MTB M&T Bank
16.1x12.5%US$25.5b
TFC Truist Financial
9.5x6.9%US$55.5b

Price-To-Earnings vs Peers: TFC is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (13.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
n/an/an/a

Price-To-Earnings vs Industry: TFC is good value based on its Price-To-Earnings Ratio (9.6x) compared to the US Banks industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is TFC'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.

TFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: TFC is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


Share Price vs Fair Value

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

Below Fair Value: TFC ($42.06) is trading below our estimate of fair value ($75.72)

Significantly Below Fair Value: TFC 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 TFC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$42.06
US$52.41
+24.6%
10.7%US$61.00US$42.00n/a22
Dec ’23US$46.22
US$52.41
+13.4%
10.7%US$61.00US$42.00n/a22
Nov ’23US$44.82
US$52.32
+16.7%
10.4%US$61.00US$42.00n/a22
Oct ’23US$43.54
US$55.83
+28.2%
9.8%US$70.00US$41.00n/a22
Sep ’23US$46.87
US$56.65
+20.9%
10.8%US$70.00US$41.00n/a22
Aug ’23US$50.30
US$56.64
+12.6%
11.0%US$70.00US$41.00n/a22
Jul ’23US$48.20
US$59.68
+23.8%
12.5%US$75.00US$41.00n/a22
Jun ’23US$48.92
US$61.61
+25.9%
13.7%US$75.00US$41.00n/a22
May ’23US$48.35
US$63.87
+32.1%
10.0%US$75.00US$53.90n/a22
Apr ’23US$55.33
US$69.65
+25.9%
7.5%US$77.00US$59.00n/a22
Mar ’23US$58.15
US$70.63
+21.5%
6.9%US$77.00US$59.00n/a22
Feb ’23US$64.02
US$70.40
+10.0%
7.4%US$77.00US$57.00n/a22
Jan ’23US$58.55
US$67.41
+15.1%
7.6%US$76.00US$57.00n/a22
Dec ’22US$58.35
US$67.01
+14.8%
7.7%US$76.00US$57.00US$46.2221
Nov ’22US$64.43
US$66.01
+2.5%
8.1%US$76.00US$52.00US$44.8221
Oct ’22US$60.22
US$62.82
+4.3%
8.3%US$76.00US$52.00US$43.5421
Sep ’22US$56.22
US$63.29
+12.6%
7.5%US$76.00US$52.00US$46.8721
Aug ’22US$54.43
US$62.92
+15.6%
8.6%US$76.00US$51.49US$50.3021
Jul ’22US$56.30
US$65.00
+15.4%
6.5%US$76.00US$57.00US$48.2021
Jun ’22US$61.50
US$64.90
+5.5%
6.1%US$74.00US$57.00US$48.9221
May ’22US$59.31
US$64.37
+8.5%
6.1%US$74.00US$57.00US$48.3523
Apr ’22US$59.05
US$60.83
+3.0%
9.8%US$74.00US$48.00US$55.3324
Mar ’22US$58.81
US$57.04
-3.0%
6.3%US$65.00US$48.00US$58.1524
Feb ’22US$48.38
US$56.35
+16.5%
5.3%US$64.00US$48.00US$64.0224
Jan ’22US$47.93
US$50.89
+6.2%
10.1%US$61.00US$37.00US$58.5524
Dec ’21US$47.52
US$48.13
+1.3%
10.3%US$61.00US$37.00US$58.3524

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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