U.S. Bancorp (USB) 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

+16.9%

$70.84

vs $60.62 price

Levered DCF

$173.43

After debt service

Piotroski score

8 / 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	11.55×	12.62×	13.24×	11.82×	10.99×	15.23×	14.25×	11.01×
P/B	1.27×	1.27×	1.21×	1.28×	1.52×	1.32×	1.81×	1.46×
P/S	1.94×	1.75×	1.64×	2.37×	3.53×	2.79×	3.43×	2.9×
EV / EBITDA	10.97×	10.36×	9.18×	10.49×	9.25×	9.24×	14.87×	11.89×
Gross margin	62.8%	58.8%	63.4%	81.0%	100.8%	76.9%	78.2%	82.0%
Operating margin	22.2%	18.5%	16.9%	26.6%	42.9%	24.0%	31.5%	33.7%
Net margin	17.7%	14.7%	13.4%	21.3%	33.6%	19.6%	25.3%	27.5%
Current ratio	0.26×	0.28×	0.26×	0.24×	0.37×	0.48×	0.41×	0.28×
Debt / equity	1.2×	1.26×	1.21×	1.4×	0.8×	1×	1.23×	1.09×
Interest coverage	0.66×	0.51×	0.54×	2.27×	10.24×	3×	1.93×	2.67×
Dividend yield	4.2%	4.6%	5.0%	4.7%	3.5%	4.1%	2.9%	3.2%
Payout ratio	46.2%	54.7%	61.0%	52.8%	36.3%	57.5%	39.7%	33.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.6%	10.8%	9.8%	11.5%	14.5%	9.3%	13.3%	13.9%
Return on invested capital	4.5%	4.0%	3.6%	3.9%	6.8%	4.0%	5.2%	5.8%
Return on assets	1.1%	0.9%	0.8%	0.9%	1.4%	0.9%	1.4%	1.5%
Free cash flow yield	9.6%	15.1%	12.6%	32.5%	11.8%	5.3%	5.2%	14.1%
Earnings yield	9.1%	8.4%	8.1%	9.0%	9.5%	7.1%	7.4%	9.5%
Enterprise value	$114B	$91.6B	$72.3B	$82.4B	$98.7B	$60.8B	$135.2B	$108.7B
Net debt / EBITDA	2.99×	1.92×	0.71×	2.23×	1.41×	-1.45×	4.56×	3.72×
Cash conversion cycle (days)	0	71	75	134	190	198	189	200