Fifth Stock Valuation

FITB -  USA Stock  

USD 36.38  0.06  0.17%

Do you wonder what the value of Fifth Third Bancorp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Fifth Third, is its stock price multiplied by the total number of shares outstanding, calculating Fifth Third's enterprise value requires a different approach. It uses Fifth Third's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Fifth Third Free Cash Flow is projected to decrease significantly based on the last few years of reporting. The past year's Free Cash Flow was at 46 Million. The current year Enterprise Value is expected to grow to about 35.6 B, whereas Tangible Asset Value is forecasted to decline to about 185.3 B.
Fifth Third Bancorp shows a prevailing Real Value of $38.34 per share. The current price of the firm is $36.38. At this time, the firm appears to be undervalued. Our model computes the value of Fifth Third Bancorp from reviewing the firm fundamentals such as Shares Outstanding of 702.11 M, shares owned by insiders of 0.42 %, and Profit Margin of 28.00 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.

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Fifth Third Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Fifth Third's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
36.38
27th of July 2021
Share
Please note that Fifth Third's price fluctuation is very steady at this time. Calculation of the real value of Fifth Third Bancorp is based on 3 months time horizon. Increasing Fifth Third's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Fifth Third Bancorp is useful when determining the fair value of the Fifth stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Fifth Third. Since Fifth Third is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Fifth Stock. However, Fifth Third's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
38.34
Real Value
40.24
Upside
Estimating the potential upside or downside of Fifth Third Bancorp helps investors to forecast how Fifth stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Fifth Third more accurately as focusing exclusively on Fifth Third's fundamentals will not take into account other important factors:
Earnings
Estimates (10)
LowProjected EPSHigh
3.363.593.71
Details
Hype
Prediction
LowEstimated ValueHigh
34.4136.3138.21
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.330.340.35
Details
16 Analysts
Consensus
LowTarget PriceHigh
22.0039.1348.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Fifth Third's intrinsic value based on its ongoing forecasts of Fifth Third's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Fifth Third's closest peers. When choosing a valuation method Fifth Third Bancorp, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

Fifth Third Investments

168.38 BillionShare

Fifth Valuation Drivers Correlation

Many accounts on the financial statements of Fifth Third Bancorp are highly interrelated and sometimes correlated. Consequently, when conducting Fifth's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Fifth
Click cells to compare fundamentals

Fifth Market Cap

Fifth Third Bancorp is one of the top stocks in market capitalization category among related companies. Market capitalization of Banks—Regional industry is currently estimated at about 33.89 Billion. Fifth Third totals roughly 25.5 Billion in market capitalization claiming about 75% of stocks in Banks—Regional industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Fifth Third Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Fifth Third's current stock value. Our valuation model uses many indicators to compare Fifth Third value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fifth Third competition to find correlations between indicators driving Fifth Third's intrinsic value. More Info.
Fifth Third Bancorp is rated # 2 in five year return category among related companies. It is rated # 2 in last dividend paid category among related companies creating about  0.37  of Last Dividend Paid per Five Year Return. The ratio of Five Year Return to Last Dividend Paid for Fifth Third Bancorp is roughly  2.73 

About Fifth Third Valuation

The equity valuation mechanism determines the current worth of Fifth Third Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Fifth Third Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Fifth Third Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Fifth Third's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Fifth Third's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Fifth Third. We calculate exposure to Fifth Third's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Fifth Third's related companies.
Last ReportedProjected for 2021
Gross Profit6.5 B7.1 B
Profit Margin 0.20  0.25 
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. Fifth Thirds common stock is traded on the NASDAQ Global Select Market under the symbol FITB. Fifth Third operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 19819 people.

Fifth Third Quarterly Enterprise Value

39.86 BillionShare

Fifth Third Dividends Analysis For Valuation

As of July 27, 2021, Preferred Dividends Income Statement Impact is expected to decline to about 96.4 M. In addition to that, Payment of Dividends and Other Cash Distributions is expected to decline to about (880.6 M). Fifth Third Earning Before Interest and Taxes EBIT is projected to increase significantly based on the last few years of reporting. The past year's Earning Before Interest and Taxes EBIT was at 1.8 Billion. The current year Earnings per Basic Share is expected to grow to 2.15, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 17 B.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact104 M96.4 M
Payment of Dividends and Other Cash Distributions-858 M-880.6 M
Dividend Yield 0.039  0.0344 
Dividends per Basic Common Share 1.08  0.89 
There are various types of dividends Fifth Third can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Fifth shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Fifth Third Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Fifth pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Fifth Third by the value of the dividends paid out.

Fifth Third Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Fifth Third does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth1,408.70%
Revenue Growth67.90%
Payout Ratio39.71%
Earnings Growth2,270.00%
Enterprise Value To Revenue5.45

Fifth Third Current Valuation Indicators

Valuation refers to the process of determining the present value of Fifth Third Bancorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Fifth we look at many different elements of the entity such as Fifth's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Please check Investing Opportunities. Note that the Fifth Third Bancorp information on this page should be used as a complementary analysis to other Fifth Third's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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When running Fifth Third Bancorp price analysis, check to measure Fifth Third's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fifth Third is operating at the current time. Most of Fifth Third's value examination focuses on studying past and present price action to predict the probability of Fifth Third's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Fifth Third's price. Additionally, you may evaluate how the addition of Fifth Third to your portfolios can decrease your overall portfolio volatility.
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The market value of Fifth Third Bancorp is measured differently than its book value, which is the value of Fifth that is recorded on the company's balance sheet. Investors also form their own opinion of Fifth Third's value that differs from its market value or its book value, called intrinsic value, which is Fifth Third's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fifth Third's market value can be influenced by many factors that don't directly affect Fifth Third Bancorp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fifth Third's value and its price as these two are different measures arrived at by different means. Investors typically determine Fifth Third value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fifth Third's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.