Financial - Credit Services · NYSE
Current Price
$190.84
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Capital One Financial Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.
ROIC (TTM)
0.4%
ROE (TTM)
2.9%
FCF Yield
23.46%
Based on trailing twelve-month data, COF shows a free cash flow per share of N/A and a ROIC of 0.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 23.46% are important context metrics when evaluating COF's stock valuation relative to peers.
The intrinsic value of COF depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether COF is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $190.84. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Capital One Financial Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Financial - Credit Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting COF's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Capital One Financial Corporation, this means projecting how much free cash flow the Financial - Credit Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. COF's ROIC of 0.4% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For COF, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
