Using the industry peer median P/E multiple (trailing + forward), Citizens Financial Group, Inc. (CFG) has a fair value of $47.04 based on 7 comparable companies in the Banks - Regional industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Citizens Financial Group, Inc.CFG | 25,645 | 15.3x | 19.5x |
| The PNC Financial Services Group, Inc.PNC | 83,163 | 12.4x | 15.4x |
| U.S. BancorpUSB | 80,210 | 11.2x | 13.4x |
| M&T Bank CorporationMTB | 30,719 | 12.1x | 14.2x |
| Fifth Third BancorpFITB | 30,370 | 12.8x | 14.4x |
| Huntington Bancshares IncorporatedHBAN | 22,916 | 11.1x | 12.9x |
| Regions Financial CorporationRF | 22,461 | 11.2x | 12.7x |
| KeyCorpKEY | 21,679 | 13.1x | 19.5x |
| Industry Median | 12.1x | 14.2x | |
| (*) Profit after tax | 1,831 | 1,318 | |
| Equity Value | 22,206 | 18,765 | |
| (/) Outstanding shares | 435 | 435 | |
| Fair Price | $51 | $43 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.