First Horizon Corporation (FHN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-19.1%

$19.20

vs $23.75 price

Levered DCF

$38.34

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.23

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.65×	14.7×	8.96×	15.12×	9.28×	6.72×	11.91×	7.93×
P/B	1.33×	1.23×	0.86×	1.59×	1.09×	0.69×	1.09×	0.95×
P/S	2.35×	2.2×	1.65×	3.84×	2.83×	1.97×	2.33×	1.93×
EV / EBITDA	11.41×	11.78×	7.41×	11.87×	-2.57×	-0.17×	14.8×	5.78×
Gross margin	67.3%	59.7%	61.4%	88.7%	104.6%	73.6%	79.4%	84.9%
Operating margin	25.7%	20.4%	23.9%	34.0%	40.7%	33.3%	26.3%	32.3%
Net margin	19.7%	15.7%	19.0%	26.4%	31.7%	30.2%	19.8%	24.6%
Current ratio	0.96×	0.13×	0.16×	0.17×	0.32×	0.24×	0.15×	0.19×
Debt / equity	0.52×	0.52×	0.41×	0.5×	0.45×	0.48×	1.17×	0.5×
Interest coverage	0.82×	0.55×	0.72×	3.98×	7.83×	3.95×	1.42×	2.19×
Dividend yield	2.9%	3.3%	4.7%	2.7%	4.1%	4.3%	3.4%	3.4%
Payout ratio	34.6%	46.6%	40.9%	39.6%	36.6%	28.3%	40.1%	26.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.1%	8.8%	10.0%	10.9%	12.2%	10.5%	9.2%	12.1%
Return on invested capital	8.4%	5.0%	6.0%	6.0%	7.3%	6.2%	4.4%	7.1%
Return on assets	1.2%	0.9%	1.1%	1.1%	1.1%	1.0%	1.0%	1.3%
Free cash flow yield	8.1%	11.2%	16.3%	17.3%	7.5%	2.1%	15.0%	4.4%
Earnings yield	8.4%	7.1%	11.6%	6.9%	11.2%	15.3%	8.5%	12.8%
Enterprise value	$15.3B	$13B	$9.1B	$14.8B	-$3.4B	-$172.1M	$9.7B	$4.5B
Net debt / EBITDA	2.69×	1.94×	1.1×	1.33×	-9.29×	-5.71×	6.84×	0.26×
Cash conversion cycle (days)	-10,476	0	0	0	0	0	7	6