Fifth Third Bancorp (FITB) Stock Valuation — PE Analysis
Banks - Regional · NYSE
Current Price
$51.00
PE Ratio (TTM)
16.9x
Intrinsic Value
$53.13
+4.0% margin of safety
COMPETITIVE MOAT
↑Strong Regional Deposit Franchise
Fifth Third benefits from a deeply entrenched deposit base in its core Midwest and Southeast markets. This provides stable, low-cost funding essential for lending operations.
↑Diversified Revenue Streams
The bank generates income from both net interest income and a growing fee-based business. This diversification reduces reliance on any single revenue source.
↑Fintech Partnerships Enhance Offerings
Recognized partnerships with fintechs like Trust & Will demonstrate an ability to integrate innovative solutions. This expands customer reach and service capabilities.
INVESTMENT RISKS
↓Interest Rate Sensitivity
While strong NII is positive, significant shifts in interest rates can impact net interest margins and loan demand. This creates earnings volatility.
↓Economic Downturn Impact
A weakening economy could lead to increased loan defaults and reduced demand for banking services. This poses a direct threat to profitability.
↓Execution of Strategic Initiatives
Successful integration of acquisitions and ongoing digital transformation require flawless execution. Any missteps could hinder growth and profitability.
Base case
FITB base case PE valuation
At a current price of $51, the base case PE valuation puts FITB fair value near $53.13 per share. That figure assumes 5.6% yearly earnings growth, a target PE multiple of 19.47x, and a 10% discount rate.
Intrinsic Value
$53.13
Margin of safety
+4.0%
Expected annual return
+0.8%
Base case assumptions: 5.6% annual earnings growth, 19.47x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FITB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Fifth Third Bancorp respond.
Open PE Calculator for FITBCompany Overview
Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that provides a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. Its Consumer and Small Banking segment engages in the provision of a range of deposit and loan products to individuals and small businesses; residential mortgage activities, including the origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and associated hedging activities; home equity loans and lines of credit, credit cards, automobile and other indirect lending, and other consumer lending services; and home improvement and solar energy installation loans through contractors and installers. The Wealth and Asset Management segment provides various wealth management services, such as wealth planning, investment management, banking, insurance, trust, and estate services for for individuals, companies, and not-for-profit organizations; retail brokerage services for individual clients; and advisory services for institutional clients. Fifth Third Bancorp was founded in 1858 and is headquartered in Cincinnati, Ohio.
Financial Metrics — FITB PE Stock Valuation Data
PE Ratio (TTM)
16.9x
PEG Ratio
n/m
Earnings Yield
5.13%
ROE (TTM)
8.4%
Revenue/Share (TTM)
$16.32
Dividend Yield
3.23%
Debt/Equity
0.65x
Frequently Asked Questions
What is the PE ratio of FITB?
The trailing twelve-month PE ratio of FITB reflects how much investors pay per dollar of Fifth Third Bancorp's earnings. This metric is most useful when compared to Banks - Regional peers and the company's own historical range.
Is FITB overvalued based on PE ratio?
FITB's PE of 16.9x combined with a PEG ratio of -2.03 provides a growth-adjusted perspective. FITB has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Regional, a DCF analysis may be more appropriate.
How do I value FITB stock using PE ratio?
To value Fifth Third Bancorp using PE: (1) Compare the current PE (16.9x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (-2.03) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FITB?
FITB's PEG ratio is -2.03, calculated by dividing the PE ratio (16.9x) by the expected earnings growth rate. Because FITB has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FITB stock valuation?
PE ratio gives a quick relative read — how FITB is priced versus Banks - Regional peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FITB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value FITB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.