PNC Bank Current Valuation vs. Return On Equity

PNC -  USA Stock  

USD 162.84  7.04  4.52%

For PNC Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PNC Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PNC Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PNC Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PNC Bank over time as well as its relative position and ranking within its peers. Please check Your Equity Center.
  
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As of June 25, 2022, Price to Sales Ratio is expected to decline to 3.91. In addition to that, Return on Sales is expected to decline to 0.29. PNC Bank Net Income to Non Controlling Interests is projected to increase significantly based on the last few years of reporting. The past year's Net Income to Non Controlling Interests was at 73.8 Million. The current year Preferred Dividends Income Statement Impact is expected to grow to about 275.6 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (257.3 M).

PNC Bank Revenues

16.05 Billion

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Is PNC Bank'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 PNC Bank. If investors know PNC Bank 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 PNC Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.21
Market Capitalization
64.4 B
Quarterly Revenue Growth YOY
0.027
Return On Assets
0.0105
Return On Equity
0.1
The market value of PNC Bank is measured differently than its book value, which is the value of PNC Bank that is recorded on the company's balance sheet. Investors also form their own opinion of PNC Bank's value that differs from its market value or its book value, called intrinsic value, which is PNC Bank'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 PNC Bank's market value can be influenced by many factors that don't directly affect PNC Bank'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 PNC Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine PNC Bank value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PNC Bank'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.

PNC Bank Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PNC Bank's current stock value. Our valuation model uses many indicators to compare PNC Bank value to that of its competitors to determine the firm's financial worth.
PNC Bank is rated top company in current valuation category among related companies. It is considered to be number one stock in return on equity category among related companies . The ratio of Current Valuation to Return On Equity for PNC Bank is about  4,519,342,360 . The current year Average Equity is expected to grow to about 44.2 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value PNC Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PNC Bank'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 PNC Bank's earnings, one of the primary drivers of an investment's value.

PNC Bank Current Valuation vs. Competition

PNC Bank is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Banks—Regional industry is at this time estimated at about 290.83 Billion. PNC Bank retains roughly 46.73 Billion in current valuation claiming about 16% of stocks in Banks—Regional industry.

PNC Bank Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
PNC Bank 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
46.73 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
PNC Bank 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
10.34 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

PNC Bank Return On Equity Comparison

PNC Bank is currently under evaluation in return on equity category among related companies.

PNC Bank Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PNC Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PNC Bank will eventually generate negative long term returns. The profitability progress is the general direction of PNC Bank's change in net profit over the period of time. It can combine multiple indicators of PNC Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-238.5 M-257.3 M
Consolidated Income3.6 B2.9 B
Net Income6.8 B5.5 B
Net Income Common Stock3.3 B2.7 B
Net Loss Income from Discontinued Operations-428.9 M-440.2 M
Net Income to Non Controlling Interests73.8 M79.6 M
Operating Income5.1 B4.4 B
Preferred Dividends Income Statement Impact247.2 M275.6 M
Income Tax Expense1.1 B973.6 M
Net Income Per Employee131.6 K105.2 K
The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. The PNC Financial Services Group, Inc. was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania. PNC Bank operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 57668 people.

PNC Bank Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PNC Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PNC Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PNC Bank's important profitability drivers and their relationship over time.

Use PNC Bank in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PNC Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PNC Bank will appreciate offsetting losses from the drop in the long position's value.

PNC Bank Pair Trading

PNC Bank Pair Trading Analysis

The ability to find closely correlated positions to PNC Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PNC Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PNC Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PNC Bank to buy it.
The correlation of PNC Bank is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PNC Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PNC Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PNC Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PNC Bank position

In addition to having PNC Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Consumer Goods Thematic Idea Now

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Consumer Goods Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Goods Theme or any other thematic opportunities.
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Please check Your Equity Center. Note that the PNC Bank information on this page should be used as a complementary analysis to other PNC Bank'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running PNC Bank price analysis, check to measure PNC Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PNC Bank is operating at the current time. Most of PNC Bank's value examination focuses on studying past and present price action to predict the probability of PNC Bank's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move PNC Bank's price. Additionally, you may evaluate how the addition of PNC Bank to your portfolios can decrease your overall portfolio volatility.
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To fully project PNC Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PNC Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PNC Bank's income statement, its balance sheet, and the statement of cash flows.
Potential PNC Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PNC Bank investors may work on each financial statement separately, they are all related. The changes in PNC Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PNC Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.