Banks - Regional · NYSE
Current Price
$28.01
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Regions Financial Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. The company also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services. As of March 01, 2022, it operated through a network of 1,300 banking offices and 2,000 automated teller machines across the South, Midwest, and Texas. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.
ROIC (TTM)
1.4%
ROE (TTM)
11.8%
FCF Yield
8.98%
Based on trailing twelve-month data, RF shows a free cash flow per share of N/A and a ROIC of 1.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 8.98% are important context metrics when evaluating RF's stock valuation relative to peers.
The intrinsic value of RF 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 RF is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $28.01. 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 Regions 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 Banks - Regional industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting RF'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 Regions Financial Corporation, 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. RF's ROIC of 1.4% 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 RF, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
