Truist Financial Corporation (TFC) 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

+372.6%

$236.94

vs $50.14 price

Levered DCF

$91.01

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.21

Distress zone

Rating

B+

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	12.75×	12.91×	-33.87×	9.65×	12.98×	15.41×	14.98×	10.94×
P/B	0.96×	0.91×	0.83×	0.94×	1.13×	0.91×	0.68×	1.11×
P/S	2.05×	2.38×	1.64×	2.56×	3.39×	2.64×	3.09×	2.58×
EV / EBITDA	13.33×	212.27×	180.15×	12.01×	10.55×	12.85×	18.32×	12.68×
Gross margin	62.2%	47.0%	59.8%	86.1%	100.2%	83.4%	81.5%	84.6%
Operating margin	20.9%	-2.5%	-2.6%	31.5%	34.7%	22.4%	27.4%	31.2%
Net margin	17.4%	19.9%	-3.6%	28.1%	27.9%	18.3%	22.0%	24.9%
Current ratio	0.87×	0.14×	0.26×	0.24×	0.44×	0.39×	0.31×	0.21×
Debt / equity	1.07×	0.98×	1.05×	1.08×	0.59×	0.64×	0.89×	0.96×
Interest coverage	0.63×	-0.05×	-0.08×	3.03×	10.41×	3.18×	1.92×	2.82×
Dividend yield	4.8%	5.4%	6.4%	5.2%	3.6%	4.2%	3.2%	4.1%
Payout ratio	56.5%	65.1%	-287.0%	47.7%	44.3%	60.8%	45.3%	42.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.1%	7.6%	-1.8%	10.3%	9.3%	6.3%	4.9%	10.7%
Return on invested capital	3.6%	-0.0%	-0.5%	4.1%	5.2%	3.5%	2.3%	5.5%
Return on assets	1.0%	0.9%	-0.2%	1.1%	1.2%	0.9%	0.7%	1.4%
Free cash flow yield	9.2%	3.7%	17.6%	18.4%	9.5%	10.3%	2.9%	11.9%
Earnings yield	8.5%	8.3%	-2.2%	11.0%	8.2%	6.9%	7.1%	9.7%
Enterprise value	$95.8B	$80.2B	$81.1B	$100.8B	$98.9B	$91B	$85.2B	$58.5B
Net debt / EBITDA	4.65×	59.52×	70.87×	5.2×	2.2×	3.73×	8.56×	5.43×
Cash conversion cycle (days)	3,903	200	134	193	164	141	393	-809