Using the industry peer median P/E multiple (trailing + forward), KeyCorp (KEY) has a fair value of $16.96 based on 4 comparable companies in the Banks - Regional industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| KeyCorpKEY | 21,805 | 13.1x | 19.6x |
| Fifth Third BancorpFITB | 30,370 | 12.8x | 14.4x |
| Citizens Financial Group, Inc.CFG | 25,299 | 15.3x | 19.5x |
| Huntington Bancshares IncorporatedHBAN | 22,916 | 11.1x | 12.9x |
| Regions Financial CorporationRF | 22,461 | 11.2x | 12.7x |
| Industry Median | 12.0x | 13.6x | |
| (*) Profit after tax | 1,829 | 1,115 | |
| Equity Value | 21,972 | 15,180 | |
| (/) Outstanding shares | 1,095 | 1,095 | |
| Fair Price | $20 | $14 | |
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.