TFC PE Ratio & Valuation, Is TFC Overvalued

Historical Valuation

Truist Financial Corp (TFC) is now in the Fair zone, suggesting that its current forward PE ratio of 11.39 is considered Fairly compared with the five-year average of 10.61. The fair price of Truist Financial Corp (TFC) is between 41.57 to 51.49 according to relative valuation method.

Relative Value

Fair Zone

41.57-51.49

Current Price：45.66

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Truist Financial Corp (TFC) has a current Price-to-Book (P/B) ratio of 1.07. Compared to its 3-year average P/B ratio of 0.91, the current P/B ratio is approximately 17.61% higher. Relative to its 5-year average P/B ratio of 1.03, the current P/B ratio is about 3.25% higher. Truist Financial Corp (TFC) has a Forward Free Cash Flow (FCF) yield of approximately 6.18%. Compared to its 3-year average FCF yield of 10.70%, the current FCF yield is approximately -42.25% lower. Relative to its 5-year average FCF yield of 9.72%, the current FCF yield is about -36.40% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for TFC competitors is 3.21, providing a benchmark for relative valuation. Truist Financial Corp Corp (TFC.N) exhibits a P/S ratio of 2.98, which is -7.05% above the industry average. Given its robust revenue growth of 0.16%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of TFC increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of TFC in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is TFC currently overvalued or undervalued?

What is Truist Financial Corp (TFC) fair value?

TFC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Truist Financial Corp (TFC) is between 41.57 to 51.49 according to relative valuation method.

How does TFC's valuation metrics compare to the industry average?

The average P/S ratio for TFC's competitors is 3.21, providing a benchmark for relative valuation. Truist Financial Corp Corp (TFC) exhibits a P/S ratio of 2.98, which is -7.05% above the industry average. Given its robust revenue growth of 0.16%, this premium appears unsustainable.

What is the current P/B ratio for Truist Financial Corp (TFC) as of Mar 12 2026?

As of Mar 12 2026, Truist Financial Corp (TFC) has a P/B ratio of 1.07. This indicates that the market values TFC at 1.07 times its book value.

What is the current FCF Yield for Truist Financial Corp (TFC) as of Mar 12 2026?

As of Mar 12 2026, Truist Financial Corp (TFC) has a FCF Yield of 6.18%. This means that for every dollar of Truist Financial Corp's market capitalization, the company generates 6.18 cents in free cash flow.

What is the current Forward P/E ratio for Truist Financial Corp (TFC) as of Mar 12 2026?

As of Mar 12 2026, Truist Financial Corp (TFC) has a Forward P/E ratio of 11.39. This means the market is willing to pay $11.39 for every dollar of Truist Financial Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Truist Financial Corp (TFC) as of Mar 12 2026?

As of Mar 12 2026, Truist Financial Corp (TFC) has a Forward P/S ratio of 2.98. This means the market is valuing TFC at $2.98 for every dollar of expected revenue over the next 12 months.

TFC Valuation