Capital One Financial Corporation (COF) Stock Valuation — PE Analysis
Financial - Credit Services · NYSE
Current Price
$206.15
PE Ratio (TTM)
12.8x
Intrinsic Value
$283.83
+27.4% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Customer Loyalty
Capital One has built a strong brand, particularly in credit cards, fostering customer loyalty. This recognition reduces customer acquisition costs and encourages repeat business.
↑Scale and Data Analytics
The company's vast customer base generates significant data. This allows for sophisticated risk assessment and personalized product offerings, creating a competitive edge.
↑Diversified Business Model
Operating in credit cards, auto loans, and banking provides diversification. This resilience helps offset weakness in any single segment, contributing to stability.
INVESTMENT RISKS
↓Economic Downturn and Defaults
A recessionary environment could lead to increased loan defaults, impacting Capital One's profitability and asset quality. Recent analysis suggests concerns about rising defaults.
↓Interest Rate Sensitivity
As a financial institution, Capital One's net interest margin is sensitive to changes in interest rates. Rising rates can increase funding costs and impact loan demand.
↓Technological Disruption
Emerging fintech companies and evolving payment technologies pose a threat. Capital One must continuously innovate to remain competitive in a rapidly changing landscape.
Base case
COF base case PE valuation
A base case PE valuation for COF estimates a fair value of about $283.83 per share, against a current price of $206.15. The model assumes 9.6% annual earnings growth, a 12x target PE multiple, and a 10% discount rate.
Intrinsic Value
$283.83
Margin of safety
+27.4%
Expected annual return
+6.6%
Base case assumptions: 9.6% annual earnings growth, 12x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 COF PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Capital One Financial Corporation respond.
Open PE Calculator for COFCompany Overview
Capital One Financial Corporation, identified by its ticker COF, operates as a prominent financial services holding company. It oversees essential subsidiaries such as Capital One Bank (USA), National Association, and Capital One, National Association, which collectively offer a broad spectrum of financial products and services throughout the United States, Canada, and the United Kingdom. The company structures its extensive operations into three core divisions: Credit Card, Consumer Banking, and Commercial Banking. Clients can utilize various deposit instruments, including checking accounts, money market accounts, negotiable order of withdrawal (NOW) accounts, savings accounts, and time deposits. Capital One's lending solutions are equally comprehensive, encompassing credit card financing, personal auto and retail banking loans, as well as significant commercial and multifamily real estate loans, and broader commercial and industrial credit facilities. Furthermore, the corporation provides credit and debit card issuance, robust online direct banking capabilities, and specialized treasury management and custodial services. Capital One serves a diverse clientele that includes individual consumers, small enterprises, and large commercial entities. It reaches these customers through a multi-channel approach, leveraging digital platforms, traditional physical branches, innovative café locations, and other distribution points, particularly within key states like New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. Established in 1988, Capital One Financial Corporation maintains its primary executive offices in McLean, Virginia.
Financial Metrics — COF PE Stock Valuation Data
PE Ratio (TTM)
12.8x
PEG Ratio
0.02
Earnings Yield
8.22%
ROE (TTM)
9.3%
Revenue/Share (TTM)
$126.70
Dividend Yield
1.46%
Debt/Equity
0.31x
Frequently Asked Questions
What is the PE ratio of COF?
The trailing twelve-month PE ratio of COF reflects how much investors pay per dollar of Capital One Financial Corporation's earnings. This metric is most useful when compared to Financial - Credit Services peers and the company's own historical range.
Is COF overvalued based on PE ratio?
COF's PE of 12.8x combined with a PEG ratio of 0.02 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 Financial - Credit Services, a DCF analysis may be more appropriate.
How do I value COF stock using PE ratio?
To value Capital One Financial Corporation using PE: (1) Compare the current PE (12.8x) against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio (0.02) 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 COF?
COF's PEG ratio is 0.02, calculated by dividing the PE ratio (12.8x) 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 COF stock valuation?
PE ratio gives a quick relative read — how COF is priced versus Financial - Credit Services 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 COF 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 COF with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.