U.S. Bancorp (USB) Stock Valuation — PE Analysis
Banks - Diversified · NYSE
Current Price
$58.94
PE Ratio (TTM)
11.7x
Intrinsic Value
$103.19
+42.9% margin of safety
COMPETITIVE MOAT
↑Diversified Revenue Streams
Acquisition of BTIG diversifies revenue by adding fee-based income from capital markets, reducing reliance on net interest income.
↑Strong Regional Presence
Extensive branch network and deep customer relationships in key U.S. markets provide a stable deposit base and cross-selling opportunities.
↑Scale and Efficiency
Large asset base allows for economies of scale in operations and technology investments, driving cost efficiencies.
INVESTMENT RISKS
↓Interest Rate Sensitivity
Profitability is significantly impacted by fluctuations in interest rates, affecting net interest margins and loan demand.
↓Regulatory Environment
The banking industry faces stringent regulations and potential changes that can increase compliance costs and limit business activities.
↓Competition
Faces intense competition from large national banks, regional players, and increasingly, fintech companies offering specialized services.
Base case
USB base case PE valuation
A base case PE valuation for USB estimates a fair value of about $103.19 per share, against a current price of $58.94. The model assumes 14.8% annual earnings growth, a 12x target PE multiple, and a 10% discount rate.
Intrinsic Value
$103.19
Margin of safety
+42.9%
Expected annual return
+11.9%
Base case assumptions: 14.8% annual earnings growth, 12x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 USB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for U.S. Bancorp respond.
Open PE Calculator for USBCompany Overview
U.S. Bancorp (USB) functions as a broad-based financial services holding company, delivering a comprehensive spectrum of banking and financial solutions throughout the United States. Its diverse customer base includes individual consumers, various businesses, institutional organizations, governmental bodies, and other financial entities. The company organizes its operations across key segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. Its offerings encompass fundamental depository services such as checking accounts, savings accounts, and time certificates. U.S. Bancorp also extends a variety of credit facilities, including traditional lending products, credit card services, lease financing, support for import/export trade, asset-backed lending, and agricultural finance. Furthermore, it provides supplementary services like capital markets access, treasury management, and receivable lock-box collection for its corporate and governmental clients. The firm also offers a full suite of asset management and fiduciary services designed for individuals, estates, foundations, corporations, and charitable organizations. Beyond these, the company supplies investment and insurance products, predominantly to customers within its operating regions, and delivers fund administration services to a range of mutual and other investment funds. Its portfolio also includes corporate and purchasing card services, corporate trust management, and merchant processing. U.S. Bancorp's capabilities additionally span investment management, ATM network operation, mortgage banking, insurance provision, brokerage activities, and leasing services. As of December 31, 2021, the company distributed its products and services through a physical network of 2,230 banking branches, mainly concentrated in the Midwest and Western United States. Digital access was also extensively provided via online platforms, mobile devices, and other electronic channels. Additionally, it managed a network of 4,059 ATMs. Founded in 1863, U.S. Bancorp is headquartered in Minneapolis, Minnesota.
Financial Metrics — USB PE Stock Valuation Data
PE Ratio (TTM)
11.7x
PEG Ratio
0.65
Earnings Yield
8.53%
ROE (TTM)
12.2%
Revenue/Share (TTM)
$27.89
Dividend Yield
3.50%
Debt/Equity
1.20x
Frequently Asked Questions
What is the PE ratio of USB?
The trailing twelve-month PE ratio of USB reflects how much investors pay per dollar of U.S. Bancorp's earnings. This metric is most useful when compared to Banks - Diversified peers and the company's own historical range.
Is USB overvalued based on PE ratio?
USB's PE of 11.7x combined with a PEG ratio of 0.65 provides a growth-adjusted perspective. A PEG below 1.0 suggests USB may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Diversified, a DCF analysis may be more appropriate.
How do I value USB stock using PE ratio?
To value U.S. Bancorp using PE: (1) Compare the current PE (11.7x) against the Banks - Diversified median to assess relative pricing, (2) check the PEG ratio (0.65) 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 USB?
USB's PEG ratio is 0.65, calculated by dividing the PE ratio (11.7x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for USB stock valuation?
PE ratio gives a quick relative read — how USB is priced versus Banks - Diversified 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 USB 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 USB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.