US Bancorp Stock Valuation

USB -  USA Stock  

USD 52.50  0.36  0.69%

Do you wonder what the value of US Bancorp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as US Bancorp, is its stock price multiplied by the total number of shares outstanding, calculating US Bancorp's enterprise value requires a different approach. It uses US Bancorp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
US Bancorp owns a latest Real Value of $57.58 per share. The recent price of the company is $52.5. At this time, the company appears to be undervalued. Our model measures the value of US Bancorp from analyzing the company fundamentals such as Current Valuation of 89.11 B, profit margin of 31.55 %, and Return On Equity of 13.96 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued equities and trading overvalued equities since, at some future date, asset prices and their ongoing real values will merge together.
  
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US Bancorp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as US Bancorp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 52.50
Share
Please note that US Bancorp's price fluctuation is very steady at this time. Calculation of the real value of US Bancorp is based on 2 months time horizon. Increasing US Bancorp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for US Bancorp is useful when determining the fair value of the US Bancorp stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of US Bancorp. Since US Bancorp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of US Bancorp Stock. However, US Bancorp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
57.58
Real Value
59.58
Upside
Estimating the potential upside or downside of US Bancorp helps investors to forecast how US Bancorp stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of US Bancorp more accurately as focusing exclusively on US Bancorp's fundamentals will not take into account other important factors:
Earnings
Estimates (11)
LowProjected EPSHigh
5.025.135.30
Details
Hype
Prediction
LowEstimated ValueHigh
50.4152.4154.41
Details
17 Analysts
Consensus
LowTarget PriceHigh
55.0066.4074.00
Details

US Bancorp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining US Bancorp's current stock value. Our valuation model uses many indicators to compare US Bancorp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across US Bancorp competition to find correlations between indicators driving US Bancorp's intrinsic value. More Info.
US Bancorp is rated first in last dividend paid category among related companies. It is rated first in price to book category among related companies fabricating about  0.83  of Price to Book per Last Dividend Paid. The ratio of Last Dividend Paid to Price to Book for US Bancorp is roughly  1.20 . Comparative valuation analysis is a catch-all model that can be used if you cannot value US Bancorp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for US Bancorp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the US Bancorp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates US Bancorp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in US Bancorp and how it compares across the competition.

About US Bancorp Valuation

The equity valuation mechanism determines the current worth of US Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of US Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of US Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing US Bancorp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of US Bancorp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of US Bancorp. We calculate exposure to US Bancorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to US Bancorp's related companies.
Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities and other financial institutions in the United States. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota. US Bancorp operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 70000 people.
US Bancorp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether US Bancorp's value is low or high relative to the company's performance and growth projections. Determining the market value of US Bancorp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of US Bancorp represents a small ownership stake in the entity. As a stockholder of US Bancorp, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

US Bancorp Dividends Analysis For Valuation

Please note that US Bancorp has scaled down on payment of dividends at this time.
There are various types of dividends US Bancorp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of US Bancorp shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from US Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When US Bancorp pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of US Bancorp by the value of the dividends paid out.

US Bancorp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as US Bancorp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-31.70%
Revenue Growth-12.50%
Payout Ratio38.79%
Earnings Growth-31.80%
Enterprise Value To Revenue3.88
Also, please take a look at World Market Map. Note that the US Bancorp information on this page should be used as a complementary analysis to other US Bancorp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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Is US Bancorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of US Bancorp. If investors know US Bancorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about US Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of US Bancorp is measured differently than its book value, which is the value of US Bancorp that is recorded on the company's balance sheet. Investors also form their own opinion of US Bancorp's value that differs from its market value or its book value, called intrinsic value, which is US Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because US Bancorp's market value can be influenced by many factors that don't directly affect US Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between US Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine US Bancorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, US Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.