Using the industry peer median P/E multiple (trailing + forward), Capital One Financial Corporation (COF) has a fair value of $169.65 based on 4 comparable companies in the Financial - Credit Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Capital One Financial CorporationCOF | 98,468 | 54.1x | 13.3x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| S&P Global Inc.SPGI | 124,938 | 28.1x | 21.0x |
| The Progressive CorporationPGR | 119,537 | 10.6x | 15.1x |
| Robinhood Markets, Inc.HOOD | 63,179 | 34.2x | 30.1x |
| Industry Median | 20.4x | 18.1x | |
| (*) Profit after tax | 2,453 | 7,400 | |
| Equity Value | 50,059 | 133,601 | |
| (/) Outstanding shares | 541 | 541 | |
| Fair Price | $92 | $247 | |
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.