Is PNC Financial Services Group Inc (PNC) overvalued?
On Equity Rank's model estimate, PNC trades close to its fair value (8% above it). PNC Financial Services Group Inc (PNC) last closed at $225.38; the multi-method model fair value is $208.79.
| Price | Model fair value | Price vs model |
|---|---|---|
| $225.38 | $208.79 | 8% above |
What the answer rests on
- 4 of 12 valuation methods put PNC's value above its price and 8 put it below, so the methods disagree.
- To justify today's price, PNC's free cash flow would need to grow about 6.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -21.4% a year.
- PNC trades at 12.4 times its last year's earnings, against a median of 12.2 for 253 profitable Banks companies.
- Over the past year the price sat below the model fair value on 8% of trading days. The gap ranged from 3% below to 38% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind PNC's fair value · What prices assume · Other companies