At this time, the firm appears to be undervalued. Discover Financial shows a prevailing Real Value of $198.84 per share. The current price of the firm is $187.18. Our model computes the value of Discover Financial from reviewing the firm fundamentals such as Profit Margin of 0.27 %, shares outstanding of 251.31 M, and Current Valuation of 38.74 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Discover Financial's valuation include:
Price Book
2.8968
Enterprise Value
38.7 B
Price Sales
4.0254
Forward PE
14.2248
Trailing PE
12.6302
Undervalued
Today 187.18
Please note that Discover Financial's price fluctuation is very steady at this time. Calculation of the real value of Discover Financial is based on 3 months time horizon. Increasing Discover Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Discover stock is determined by what a typical buyer is willing to pay for full or partial control of Discover Financial Services. Since Discover Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Discover Stock. However, Discover Financial'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.
Historical
Market 187.18
Real 198.84
Target 189.62
Hype 188.06
The intrinsic value of Discover Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Discover Financial's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Discover Financial Services helps investors to forecast how Discover 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 Discover Financial more accurately as focusing exclusively on Discover Financial's fundamentals will not take into account other important factors:
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Discover Financial's intrinsic value based on its ongoing forecasts of Discover Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Discover Financial's closest peers.
Discover Financial Cash
12.62 Billion
Discover Valuation Trend
Discover Financial's real value is important for investors to make better decisions and a more accurate overall view of Discover Financial's financial worth over time. Using both Discover Financial's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Discover Revenue by Product
Discover Financial Total Value Analysis
Discover Financial Services is currently forecasted to have company total value of 38.74 B with market capitalization of 47.04 B, debt of 21.33 B, and cash on hands of 10 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Discover Financial fundamentals before making security assessment based on enterprise value of the company
About 86.0% of the company shares are held by institutions such as insurance companies. The book value of Discover Financial was currently reported as 68.77. The company recorded earning per share (EPS) of 14.82. Discover Financial last dividend was issued on the 21st of November 2024. The entity had 1:5 split on the January 31, 2014. Discover Financial Services may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Discover Financial has an asset utilization ratio of 6.5 percent. This implies that the Company is making $0.065 for each dollar of assets. An increasing asset utilization means that Discover Financial Services is more efficient with each dollar of assets it utilizes for everyday operations.
Housing Crash
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Covid
Discover Financial Ownership Allocation
Discover Financial holds a total of 251.31 Million outstanding shares. The majority of Discover Financial Services outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Discover Financial to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Discover Financial. Please pay attention to any change in the institutional holdings of Discover Financial Services as this could imply that something significant has changed or is about to change at the company. Please note that on December 18, 2024, Representative Michael McCaul of US Congress acquired under $15k worth of Discover Financial's common stock.
Discover Financial Profitability Analysis
The company reported the last year's revenue of 9.84 B. Total Income to common stockholders was 2.92 B with profit before taxes, overhead, and interest of 11.08 B.
Discover Financial Past Distributions to stockholders
The stock valuation mechanism determines Discover Financial's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Discover Financial based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Discover Financial. We calculate exposure to Discover Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Discover Financial's related companies.
Discover Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Discover Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Discover Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Discover Financial represents a small ownership stake in the entity. As a stockholder of Discover, 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.
Discover Financial Dividends Analysis For Valuation
At this time, Discover Financial's Dividend Yield is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.39 in 2025, whereas Dividends Paid is likely to drop slightly above 570 M in 2025. . At this time, Discover Financial's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 34.4 B in 2025, whereas Earnings Yield is likely to drop 0.08 in 2025.
There are various types of dividends Discover Financial 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 Discover 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 Discover Financial Services directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Discover pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Discover Financial by the value of the dividends paid out.
Discover Financial Growth Indicators
Investing in growth stocks can be very risky. If the company such as Discover Financial 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.
Common Stock Shares Outstanding
254 M
Quarterly Earnings Growth Y O Y
0.426
Forward Price Earnings
14.2248
Discover Financial Current Valuation Indicators
Discover Financial's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Discover Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Discover Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Discover Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Discover Financial's worth.
Additional Tools for Discover Stock Analysis
When running Discover Financial's price analysis, check to measure Discover Financial'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 Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.