Using the industry peer median P/E multiple (trailing + forward), Northern Trust Corporation (NTRS) has a fair value of $105.43 based on 5 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Northern Trust CorporationNTRS | 26,030 | 15.8x | 15.9x |
| U.S. BancorpUSB | 80,210 | 11.2x | 13.4x |
| State Street CorporationSTT | 35,163 | 13.4x | 12.4x |
| Citizens Financial Group, Inc.CFG | 25,299 | 15.3x | 19.5x |
| Cincinnati Financial CorporationCINF | 24,460 | 10.4x | 11.4x |
| T. Rowe Price Group, Inc.TROW | 19,760 | 9.8x | 9.3x |
| Industry Median | 11.2x | 12.4x | |
| (*) Profit after tax | 1,737 | 1,637 | |
| Equity Value | 19,451 | 20,313 | |
| (/) Outstanding shares | 189 | 189 | |
| Fair Price | $103 | $108 | |
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.