Regions Financial Corporation (RF) Stock Valuation — PE Analysis
Banks - Regional · NYSE
Current Price
$29.27
PE Ratio (TTM)
11.4x
Intrinsic Value
$44.83
+34.7% margin of safety
COMPETITIVE MOAT
↑Strong Regional Brand Recognition
Regions Bank benefits from a well-established brand presence across its core operating footprint. This familiarity fosters customer loyalty and trust, particularly in local communities.
↑Customer Service Excellence
Consistent recognition for customer satisfaction, such as the JD Power ranking, indicates a commitment to service. This can lead to higher retention rates and positive word-of-mouth referrals.
↑Targeted Product Development
Focus on specific areas like homeownership resources and institutional services demonstrates strategic product alignment. This caters to distinct customer needs and builds specialized expertise.
INVESTMENT RISKS
↓Intense Competition
The regional banking sector is highly competitive, with both larger national banks and smaller community banks vying for market share. This can pressure margins and growth.
↓Interest Rate Sensitivity
As a traditional bank, Regions' profitability is significantly influenced by interest rate fluctuations. Changes in rates can impact net interest margins and loan demand.
↓Regulatory Environment
The banking industry is subject to extensive and evolving regulations. Compliance costs and potential changes in policy can create operational and financial challenges.
Base case
RF base case PE valuation
A base case PE valuation for RF estimates a fair value of about $44.83 per share, against a current price of $29.27. The model assumes 12.1% annual earnings growth, a 11x target PE multiple, and a 10% discount rate.
Intrinsic Value
$44.83
Margin of safety
+34.7%
Expected annual return
+8.9%
Base case assumptions: 12.1% annual earnings growth, 11x 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 RF PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Regions Financial Corporation respond.
Open PE Calculator for RFCompany Overview
Regions Financial Corporation (RF) operates as a financial holding company, delivering a comprehensive array of banking and related services to both individual consumers and corporate entities. The firm's operations are strategically divided into three principal divisions: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment specializes in commercial banking solutions. Its extensive offerings include various lending options such as commercial and industrial loans, commercial real estate financing, and investor real estate credit. Furthermore, it provides equipment lease financing, manages diverse deposit products, and offers sophisticated capital markets services like securities underwriting and placement, loan syndication, foreign exchange, derivatives, and merger and acquisition advisory, along with other consulting services. This segment primarily serves corporate clients, middle-market businesses, and developers and investors in commercial real estate. Focusing on individual customers, the Consumer Bank segment delivers a range of personal financial products. These include residential first mortgages, home equity lines of credit and loans, consumer credit cards, and other personal lending facilities, in addition to deposit accounts. The Wealth Management division offers extensive financial planning and asset management services. Its provisions encompass credit-related products, retirement and savings solutions, trust and investment management, and estate planning expertise. Its diverse clientele includes individuals, businesses, governmental organizations, and non-profit entities. Beyond these core banking functions, Regions Financial Corporation also provides investment and insurance products, facilitates the syndication of corporate funds for low-income housing tax credits, and engages in various other specialized financing activities. As of March 1, 2022, the company maintained a significant physical presence, operating through a network of 1,300 banking branches and approximately 2,000 automated teller machines across the Southern, Midwestern, and Texas regions of the United States. Regions Financial Corporation was established in 1971 and its corporate headquarters are located in Birmingham, Alabama.
Financial Metrics — RF PE Stock Valuation Data
PE Ratio (TTM)
11.4x
PEG Ratio
0.67
Earnings Yield
8.81%
ROE (TTM)
11.8%
Revenue/Share (TTM)
$11.15
Dividend Yield
3.62%
Debt/Equity
0.34x
Frequently Asked Questions
What is the PE ratio of RF?
The trailing twelve-month PE ratio of RF reflects how much investors pay per dollar of Regions Financial Corporation's earnings. This metric is most useful when compared to Banks - Regional peers and the company's own historical range.
Is RF overvalued based on PE ratio?
RF's PE of 11.4x combined with a PEG ratio of 0.67 provides a growth-adjusted perspective. A PEG below 1.0 suggests RF 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 - Regional, a DCF analysis may be more appropriate.
How do I value RF stock using PE ratio?
To value Regions Financial Corporation using PE: (1) Compare the current PE (11.4x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (0.67) 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 RF?
RF's PEG ratio is 0.67, calculated by dividing the PE ratio (11.4x) 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 RF stock valuation?
PE ratio gives a quick relative read — how RF 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 RF 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 RF 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.