A cash-flow DCF is not the right model for KEY
KeyCorp is a bank, insurer, or real estate company. A standard discounted cash flow model values a business on its free cash flow, but for these companies free cash flow is not a clean measure of value. Banks and insurers are valued on book value, return on equity, and a price-to-earnings multiple; REITs are valued on funds from operations (FFO) and dividends, not free cash flow. Running a free cash flow DCF here would produce a misleading number, so we do not show one.
Current Price
$22.70
COMPETITIVE MOAT
↑Regional Deposit Franchise
KeyCorp benefits from a stable, low-cost deposit base in its core regional markets. This provides a funding advantage over competitors reliant on wholesale funding.
↑Commercial Banking Relationships
Strong, long-term relationships with commercial clients in its operating regions foster recurring fee income and cross-selling opportunities. This deepens customer loyalty.
↑Scale and Diversification
As a large regional bank, KeyCorp possesses the scale to invest in technology and offer a broad range of financial services. This diversification mitigates risk.
INVESTMENT RISKS
↓Interest Rate Sensitivity
KeyCorp's profitability is significantly impacted by fluctuations in interest rates. Rising rates can increase funding costs, while falling rates can compress net interest margins.
↓Regulatory Environment
The banking industry faces ongoing regulatory scrutiny and potential changes. New regulations could increase compliance costs and impact business operations.
↓Economic Downturn Impact
A significant economic slowdown could lead to increased loan defaults and reduced demand for banking services. This would negatively affect asset quality and earnings.
Company Overview
KeyCorp functions as the parent entity for KeyBank National Association, delivering a wide array of banking services to retail and business clients across the United States. Its operations are distinctly segmented into a Consumer Bank and a Commercial Bank. Targeting both individual consumers and small to medium-sized businesses, the corporation extends a comprehensive suite of services. These offerings include various deposit accounts, investment solutions, personal financial planning and wellness programs, student loan refinancing, mortgage and home equity products, general lending, credit card services, treasury management, business advisory, wealth and asset management, and trust-related services. Moreover, the company furnishes middle-market clients with a robust selection of sophisticated banking and capital market products. These encompass syndicated lending, debt and equity capital market offerings, commercial payment solutions, equipment financing, commercial real estate mortgage banking, derivatives, foreign exchange services, financial advisory, and public finance. Its commercial mortgage portfolio encompasses loans across diverse sectors, including consumer, energy, healthcare, industrial, public sector, real estate, and technology. Additionally, KeyCorp engages in community development financing, securities underwriting, brokerage, and investment banking services. As of December 31, 2021, its operational reach extended across 15 states, supported by an extensive network of approximately 999 physical branches and 1,317 automated teller machines (ATMs). Beyond its physical footprint, the company offers online and mobile banking capabilities, alongside a dedicated telephone banking call center and other offices. Established in 1849, KeyCorp maintains its corporate headquarters in Cleveland, Ohio.
Learn More
- See KEY PE Valuation → — The earnings-based method that fits this kind of business
- PE Methodology — Guide to PE ratio stock valuation
- P/E Ratio — How an earnings multiple values a stock
- Price-to-Book — A core metric for valuing banks and insurers
- Return on Equity — Why ROE drives bank and insurer valuations
Related Valuations
All Financial Services valuationsDCF and P/E value KEY with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.