Fifth Third Bancorp (FITB) Stock Valuation — PE Analysis
Banks - Regional · NASDAQ
Current Price
$54.73
PE Ratio (TTM)
20.8x
Intrinsic Value
$72.13
+24.1% margin of safety
COMPETITIVE MOAT
↑Small Business Ecosystem
Fifth Third is building a comprehensive offering for small businesses, integrating digital lending, faster payments, and local banker support. This aims to create stickiness and a competitive advantage in a key segment.
↑Payments Infrastructure Innovation
The recognition of its Newline platform for next-generation payments infrastructure highlights a technological edge. This can attract and retain business clients seeking efficient payment solutions.
↑High Net Worth Client Focus
Consistent recognition as the best private bank for high net worth clients suggests a strong reputation and specialized service. This attracts and retains valuable, high-margin customer relationships.
INVESTMENT RISKS
↓Merger Integration Challenges
The recent completion of the Comerica merger presents integration risks. Successful synergy realization and customer retention post-merger are critical for long-term success.
↓Intense Regional Competition
As a regional bank, FITB faces intense competition from larger national banks and other regional players. Maintaining market share requires continuous innovation and customer service excellence.
↓Economic Sensitivity
Regional banks are highly sensitive to local economic conditions. Downturns in their core operating regions can negatively impact loan performance and overall profitability.
Base case
FITB base case PE valuation
A base case PE valuation for FITB estimates a fair value of about $72.13 per share, against a current price of $54.73. The model assumes 11.3% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.
Intrinsic Value
$72.13
Margin of safety
+24.1%
Expected annual return
+5.7%
Base case assumptions: 11.3% annual earnings growth, 21x 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 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 is a comprehensive financial services provider operating throughout the United States. Its Commercial Banking division offers a wide array of credit, cash management, and advanced financial solutions. This includes lending, deposit products, foreign exchange, international trade financing, capital market and derivative instruments, asset-based and real estate lending, public and syndicated finance, and commercial leasing, all tailored for business, government, and professional clients. The Branch Banking segment focuses on individuals and small businesses, supplying essential deposit and loan options such as checking and savings accounts, home equity loans and lines of credit, credit cards, and financing for automobiles and personal needs, along with cash management for small businesses. Fifth Third's Consumer Lending unit manages direct originations, retention, and servicing of residential mortgage and home equity credit facilities. It also facilitates indirect consumer loans through partnerships with correspondent lenders and automobile dealerships. The Wealth & Asset Management segment delivers diverse investment alternatives for individuals, companies, and non-profit organizations. This includes retail brokerage services for individual investors and broker-dealer services for institutional clients. Additionally, it offers comprehensive wealth planning, investment management, banking, insurance, trust and estate services, and advisory support for institutional accounts including middle market businesses, non-profits, states, and municipalities. As of December 31, 2021, the company's extensive network comprised 1,117 full-service banking centers and 2,322 ATMs spread across Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina, and South Carolina. Founded in 1858, Fifth Third Bancorp maintains its headquarters in Cincinnati, Ohio.
Financial Metrics — FITB PE Stock Valuation Data
PE Ratio (TTM)
20.8x
PEG Ratio
n/m
Earnings Yield
4.81%
ROE (TTM)
8.9%
Revenue/Share (TTM)
$16.55
Dividend Yield
2.87%
Debt/Equity
0.59x
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 20.8x combined with a PEG ratio of -3.88 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 (20.8x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (-3.88) 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 -3.88, calculated by dividing the PE ratio (20.8x) 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.