DFS

Discover Financial Services

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0.000

-200.05(-100.000%)1D

Overview
Forecast
Valuation
Earnings

High

Open

VWAP

Vol

Mkt Cap

31.01B

Low

Amount

EV/EBITDA(TTM)

8.18

Total Shares

250.60M

54.07B

EV/OCF(TTM)

6.21

P/S(TTM)

2.79

Discover Financial Services is a digital banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Digital Banking and Payment Services. Its Digital Banking segment includes consumer banking and lending products, specifically Discover-branded credit cards issued to individuals on the Discover Network and other consumer banking products and services, including private student loans, personal loans, home loans and deposit products. Its Payment Services segment includes PULSE, Diners Club, and its Network Partners business, which provides payment transaction processing and settlement services on the Discover Global Network. Its processing services covers four functional areas such as card personalization, print/mail, remittance processing and item processing. Its private student loans are primarily available to students attending eligible non-profit undergraduate and graduate schools.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q4

FY2025Q3

FY2025Q2

4.49B

-5.61%

3.613

-29.3%

4.38B

-1.59%

3.469

-6%

4.32B

-4.78%

3.536

-41.66%

Estimates Revision

The market is revising No Change the revenue expectations for Discover Financial Services (DFS) for FY2025, with the revenue forecasts being adjusted by 0% over the past three months. During the same period, the stock price has changed by 21.02%.

Revenue Estimates for FY2025

No Change

0.00%

In Past 3 Month

EPS Estimates for FY2025

No Change

0.00%

In Past 3 Month

Stock Price

Go Up

+21.02%

In Past 3 Month

10 Analyst Rating

Wall Street analysts forecast DFS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DFS is 190.38 USD with a low forecast of 153.00 USD and a high forecast of 232.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

5 Hold

0 Sell

Moderate Buy

Current: 0

Low

153.00

Averages

190.38

High

232.00

Current: 0

Low

153.00

Averages

190.38

High

232.00

BofA

Mihir Bhatia

Buy

maintain

$223 -> $233

2025-05-21

Reason

BofA

Mihir Bhatia

Price Target

$223 -> $233

2025-05-21

maintain

Buy

Reason

Wells Fargo

Equal Weight

downgrade

$214 -> $180

2025-04-25

Reason

Wells Fargo

Price Target

$214 -> $180

2025-04-25

downgrade

Equal Weight

Reason

Wells Fargo lowered the firm's price target on Discover to $180 from $214 and keeps an Equal Weight rating on the shares following quarterly results. The firm notes the Q1 beat was driven by lower provision and opex. The credit metrics showed continued improvement, and they released reserves this quarter.

Truist

Buy

maintain

$219 -> $229

2025-04-25

Reason

Truist

Price Target

$219 -> $229

2025-04-25

maintain

Buy

Reason

Truist raised the firm's price target on Discover to $229 from $219 and keeps a Buy rating on the shares as part of a broader research note on Consumer Finance names. The firm is updating its models after Q1 results, with a positive view on the company's Q1 beat on provisions and partly by net interest margin, the analyst tells investors in a research note.

RBC Capital

Sector Perform

maintain

$186 -> $194

2025-04-25

Reason

RBC Capital

Price Target

$186 -> $194

2025-04-25

maintain

Sector Perform

Reason

RBC Capital raised the firm's price target on Discover to $194 from $186 and keeps a Sector Perform rating on the shares after its Q1 earnings beat. Ahead of Capital One (COF) merger, the company's core trends were solid with improvement in credit card delinquencies and charge-offs as positive trends, the analyst tells investors in a research note.

TD Cowen

Moshe Orenbuch

Buy

downgrade

$188 -> $184

2025-04-24

Reason

TD Cowen

Moshe Orenbuch

Price Target

$188 -> $184

2025-04-24

downgrade

Buy

Reason

TD Cowen analyst Moshe Orenbuch lowered the firm's price target on Discover to $184 from $188 and keeps a Buy rating on the shares. The firm updated its model following Q1 results.

JP Morgan

Richard Shane

Hold

Maintains

$169 → $129

2025-04-08

Reason

JP Morgan

Richard Shane

Price Target

$169 → $129

2025-04-08

Maintains

Hold

Reason

See All Ratings

Valuation Metrics

The current forward P/E ratio for Discover Financial Services (DFS.N) is 13.64, compared to its 5-year average forward P/E of 8.76. For a more detailed relative valuation and DCF analysis to assess Discover Financial Services 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Strongly Overvalued

5Y Average PE

8.76

Current PE

13.64

Overvalued PE

11.03

Undervalued PE

6.50

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

N/A

5Y Average EV/EBITDA

0.00

Current EV/EBITDA

0.00

Overvalued EV/EBITDA

0.00

Undervalued EV/EBITDA

0.00

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

Overvalued

5Y Average PS

2.15

Current PS

2.85

Overvalued PS

2.68

Undervalued PS

1.62