Northern Trust Corporation

NasdaqGS:NTRS.O Stock Report

Market Cap: US$21.7b

Northern Trust Valuation

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

Below Fair Value: NTRS.O ($21.52) is trading below our estimate of fair value ($22.34)

Significantly Below Fair Value: NTRS.O is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NTRS.O?

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

The above table shows the Price to Earnings ratio for NTRS.O. This is calculated by dividing NTRS.O's market cap by their current earnings.
What is NTRS.O's PE Ratio?
PE Ratio13.3x
EarningsUS$1.63b
Market CapUS$21.70b

Price to Earnings Ratio vs Peers

How does NTRS.O's PE Ratio compare to its peers?

The above table shows the PE ratio for NTRS.O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
STT State Street
14.8x13.5%US$28.6b
TROW T. Rowe Price Group
13x0.3%US$26.6b
BEN Franklin Resources
26.6x18.5%US$11.5b
SEIC SEI Investments
19.1x7.0%US$10.4b
NTRS.O Northern Trust
13.3x-9.4%US$21.7b

Price-To-Earnings vs Peers: NTRS.O is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does NTRS.O's PE Ratio compare vs other companies in the US Capital Markets Industry?

23 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
3.6xn/aUS$2.28b
CET Central Securities
4.5xn/aUS$1.32b
GAM General American Investors Company
4.1xn/aUS$1.17b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
NTRS.O 13.3xIndustry Avg. 24.3xNo. of Companies74PE020406080100+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NTRS.O is good value based on its Price-To-Earnings Ratio (13.3x) compared to the US Capital Markets industry average (24.3x).

Price to Earnings Ratio vs Fair Ratio

What is NTRS.O'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.

NTRS.O PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: NTRS.O is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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