Truist Financial Corporation (TFC) Stock Valuation — PE Analysis
Banks - Regional · NYSE
Current Price
$45.57
PE Ratio (TTM)
10.3x
Intrinsic Value
$53.37
+14.6% margin of safety
COMPETITIVE MOAT
↑Strong Regional Brand Recognition
Truist benefits from a well-established brand across its key Southern and Mid-Atlantic markets. This recognition fosters customer loyalty and trust.
↑Integrated Technology Platform
The merger created a unified technology infrastructure. This integration aims to drive efficiency and offer a seamless customer experience across all services.
↑Diversified Revenue Streams
Truist generates income from various sources including net interest income, fee-based services, and wealth management. This diversification mitigates reliance on any single revenue driver.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic slowdown could lead to increased loan defaults and reduced demand for banking services. This would negatively affect Truist's financial performance.
↓Regulatory Environment Changes
Evolving banking regulations could impose new compliance costs or restrict certain business activities. This uncertainty poses a risk to operational flexibility and profitability.
↓Integration Execution Risk
While the merger created opportunities, ongoing integration challenges could hinder efficiency gains or customer satisfaction. Successful execution remains critical.
Base case
TFC base case PE valuation
At a current price of $45.57, the base case PE valuation puts TFC fair value near $53.37 per share. That figure assumes 3.4% yearly earnings growth, a target PE multiple of 9.55x, and a 10% discount rate.
Intrinsic Value
$53.37
Margin of safety
+14.6%
Expected annual return
+3.2%
Base case assumptions: 3.4% annual earnings growth, 9.55x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
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 TFC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Truist Financial Corporation respond.
Open PE Calculator for TFCCompany Overview
Truist Financial Corporation operates as a diversified financial holding company, providing an extensive array of banking and trust services throughout the Southeastern and Mid-Atlantic regions of the United States. Its business activities are structured across three main segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. The corporation offers a broad spectrum of deposit products, including both interest-bearing and noninterest-bearing checking accounts, savings accounts, money market deposit accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Beyond deposit services, Truist delivers a comprehensive suite of financial solutions. These include various lending options such as automobile, bankcard, consumer, home equity, mortgage, small business, and student loans, alongside specialized commercial financing for areas like floor plan, real estate, and mortgage warehousing, as well as lease and supply chain financing. The company also provides extensive wealth management and investment services, encompassing asset management, investment brokerage, private banking, capital markets, institutional trust, and private equity investment solutions. Further offerings include corporate and investment banking, securities underwriting, and advisory services. Additionally, Truist offers a wide range of insurance products, covering property and casualty, life, health, employee benefits, workers' compensation, professional liability, surety, and title insurance. Digital banking platforms (mobile and online), payment processing, international banking, merchant services, and treasury management are also integral parts of its service portfolio. Headquartered in Charlotte, North Carolina, Truist Financial Corporation was founded in 1872. As of December 31, 2021, the company maintained a substantial presence with 2,517 banking offices. The organization officially adopted its current name, Truist Financial Corporation, in December 2019, having previously operated as BB&T Corporation.
Financial Metrics — TFC PE Stock Valuation Data
PE Ratio (TTM)
10.3x
PEG Ratio
0.55
Earnings Yield
10.46%
ROE (TTM)
9.0%
Revenue/Share (TTM)
$24.92
Dividend Yield
4.56%
Debt/Equity
1.09x
Frequently Asked Questions
What is the PE ratio of TFC?
The trailing twelve-month PE ratio of TFC reflects how much investors pay per dollar of Truist Financial Corporation's earnings. This metric is most useful when compared to Banks - Regional peers and the company's own historical range.
Is TFC overvalued based on PE ratio?
TFC's PE of 10.3x combined with a PEG ratio of 0.55 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. 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 TFC stock using PE ratio?
To value Truist Financial Corporation using PE: (1) Compare the current PE (10.3x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (0.55) 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 TFC?
TFC's PEG ratio is 0.55, calculated by dividing the PE ratio (10.3x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TFC stock valuation?
PE ratio gives a quick relative read — how TFC 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 TFC 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 TFC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.