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Fifth Third Bancorp (FITB) Stock: How Does it Score on Valuation Metrics?

Wednesday, November 29, 2023 02:11 PM | InvestorsObserver Analysts

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Fifth Third Bancorp (FITB) Stock: How Does it Score on Valuation Metrics?

Fifth Third Bancorp (FITB) receives a strong valuation score of 95 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. FITB holds a better value than 95% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 95
FITB gets a 95 Valuation Rank today. Find out what this means to you and get the rest of the rankings on FITB!

Metrics Analysis

FITB has a trailing twelve month Price to Earnings (PE) ratio of 7.37. The historical average of roughly 15 shows a good value for FITB stock as investors are paying lower share prices relative to the company's earnings. FITB's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 3.62 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
FITB currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.94. The market is currently fairly valuing FITB in relation to its projected growth due to the PEG ratio being around the fair market value of 1. FITB's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

FITB' has a adequate valuation at its current share price on account of a fairly valued PEG ratio due to strong growth. FITB's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Fifth Third Bancorp (FITB) stock.

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