Truist Financial Corporation

NYSE:TFC Stock Report

Market Cap: US$61.9b

Truist Financial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

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 ($46.18) is trading below our estimate of fair value ($65.91)

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

Key Valuation Metric

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

Key metric: As TFC is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for TFC. This is calculated by dividing TFC's market cap by their current book value.
What is TFC's PB Ratio?
PB Ratio1x
BookUS$59.02b
Market CapUS$61.90b

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for TFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.3x
MTB M&T Bank
1.3x6.7%US$35.5b
RF Regions Financial
1.4x12.6%US$23.9b
HBAN Huntington Bancshares
1.4x15.4%US$25.5b
CFG Citizens Financial Group
0.9x21.6%US$20.3b
TFC Truist Financial
1x57.5%US$61.9b

Price-To-Book vs Peers: TFC is good value based on its Price-To-Book Ratio (1x) compared to the peer average (1.3x).

Price to Book Ratio vs Industry

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

4 CompaniesPrice / BookEstimated GrowthMarket Cap
FRCB First Republic Bank
0.002xn/aUS$27.98m
SBNY Signature Bank
0.0003xn/aUS$2.18m
BKES.F Banco Espírito Santo
n/an/aUS$56.01k
BCBH.F Caribbean Investment Holdings
n/an/aUS$132.00
No more companies available in this PB range
TFC 1.0xIndustry Avg. 1.0xNo. of Companies129PB00.61.21.82.43+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: TFC is expensive based on its Price-To-Book Ratio (1x) compared to the US Banks industry average (1x).

Price to Book Ratio vs Fair Ratio

What is TFC's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TFC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate TFC's Price-To-Book Fair Ratio for valuation analysis.

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$46.18
US$47.72
+3.3%
3.6%US$52.00US$45.00n/a21
Nov ’25US$42.82
US$47.25
+10.3%
3.6%US$50.00US$44.00n/a21
Oct ’25US$41.72
US$46.88
+12.4%
5.0%US$51.00US$42.00n/a21
Sep ’25US$44.46
US$46.75
+5.1%
5.1%US$51.00US$42.00n/a22
Aug ’25US$43.35
US$46.43
+7.1%
5.7%US$51.00US$41.00n/a23
Jul ’25US$39.25
US$42.99
+9.5%
6.7%US$47.00US$34.00n/a23
Jun ’25US$37.75
US$43.06
+14.1%
6.8%US$47.00US$34.00n/a23
May ’25US$38.05
US$42.47
+11.6%
7.9%US$50.00US$34.00n/a21
Apr ’25US$38.37
US$41.25
+7.5%
9.8%US$50.00US$31.10n/a22
Mar ’25US$35.26
US$40.84
+15.8%
10.0%US$50.00US$31.10n/a22
Feb ’25US$36.50
US$40.90
+12.0%
9.5%US$50.00US$31.10n/a24
Jan ’25US$36.92
US$36.95
+0.08%
13.0%US$50.00US$28.00n/a25
Dec ’24US$33.27
US$35.11
+5.5%
14.9%US$50.00US$28.00n/a24
Nov ’24US$28.49
US$34.54
+21.2%
16.4%US$50.00US$24.00US$42.8224
Oct ’24US$28.61
US$36.30
+26.9%
13.3%US$50.00US$29.00US$41.7224
Sep ’24US$30.90
US$37.07
+20.0%
11.6%US$50.00US$29.50US$44.4624
Aug ’24US$32.80
US$37.44
+14.2%
12.3%US$54.00US$31.00US$43.3524
Jul ’24US$30.35
US$38.66
+27.4%
15.3%US$54.00US$29.00US$39.2522
Jun ’24US$30.96
US$41.20
+33.1%
15.5%US$54.00US$31.00US$37.7522
May ’24US$31.52
US$42.86
+36.0%
14.9%US$57.00US$31.00US$38.0522
Apr ’24US$34.10
US$50.77
+48.9%
12.3%US$57.00US$31.00US$38.3722
Mar ’24US$46.70
US$52.54
+12.5%
7.8%US$60.00US$42.00US$35.2622
Feb ’24US$49.63
US$52.18
+5.1%
8.7%US$60.00US$42.00US$36.5022
Jan ’24US$43.03
US$52.14
+21.2%
10.4%US$61.00US$42.00US$36.9222
Dec ’23US$46.22
US$52.41
+13.4%
10.7%US$61.00US$42.00US$33.2722
Nov ’23US$44.82
US$52.32
+16.7%
10.4%US$61.00US$42.00US$28.4922

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

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