Banks - Regional · NASDAQ
Current Price
$16.31
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Huntington Bancshares Incorporated with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company operates through four segments: Consumer and Business Banking; Commercial Banking; Vehicle Finance; and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, and consumer and small business loans, as well as investment products. This segment also provides mortgages, insurance, interest rate risk protection, foreign exchange, automated teller machine, and treasury management services, as well as online, mobile, and telephone banking services. It serves consumer and small business customers. The Commercial Banking segment offers regional commercial banking solutions for middle market businesses, government and public sector entities, and commercial real estate developers/REITs; and specialty banking solutions for healthcare, technology and telecommunications, franchise finance, sponsor finance, and global services industries. It also provides asset finance services; capital raising solutions, sales and trading, and corporate risk management products; institutional banking services; and treasury management services. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment offers private banking, wealth and investment management, and retirement plan services. As of March 18, 2022, the company had approximately 1,000 branches in 11 states. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.
ROIC (TTM)
4.4%
ROE (TTM)
8.8%
FCF Yield
8.77%
Based on trailing twelve-month data, HBAN shows a free cash flow per share of N/A and a ROIC of 4.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 8.77% are important context metrics when evaluating HBAN's stock valuation relative to peers.
The intrinsic value of HBAN 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 HBAN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $16.31. 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 Huntington Bancshares Incorporated: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Banks - Regional industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HBAN'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 Huntington Bancshares Incorporated, this means projecting how much free cash flow the Banks - Regional will produce over the next 5-10 years, then discounting those amounts to today's dollars. HBAN's ROIC of 4.4% 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 HBAN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
