Is Truist Financial Corp (TFC) overvalued?
On Equity Rank's model estimate, TFC trades close to its fair value (3% above it). Truist Financial Corp (TFC) last closed at $49.38; the multi-method model fair value is $48.00.
| Price | Model fair value | Price vs model |
|---|---|---|
| $49.38 | $48.00 | 3% above |
What the answer rests on
- 5 of 11 valuation methods put TFC's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, TFC's free cash flow would need to grow about -3.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -18.3% a year.
- TFC trades at 12.8 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 87% of trading days. The gap ranged from 27% below to 15% 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 TFC's fair value · What prices assume · Other companies