The PNC Financial Services Group, Inc. (PNC)
Valuation Overview•Is The PNC Financial Services Group, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 53/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
PNC demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 27.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.2B | -7.0% | — | — | +6.8% | |
| EBITDA | $2.3B | — | +1.8% | — | — | |
| Net Income | $1.8B | +17.8% | +4.7% | — | +5.4% | |
| EPS (Diluted) | $4.13 | +20.7% | +6.2% | +21.1% | +8.4% | |
| Free Cash Flow | $1.9B | -44.4% | -21.6% | -1.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 71.9% | 65.4% | 77.1% | 79.9% |
| Operating Margin | 27.5% | 23.2% | 27.4% | 27.4% |
| Net Margin | 22.5% | 19.0% | 22.3% | 26.0% |
| FCF Margin | 21.3% | 23.0% | 28.9% | 29.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $4.46 | $4.85 | +8.7% | ||
| Q2'26 | $3.93 | $4.13 | +5.1% | ||
| Q1'26 | $4.23 | $4.88 | +15.4% | ||
| Q4'25 | $4.05 | $4.35 | +7.4% | ||
| Q3'25 | $3.55 | $3.85 | +8.5% | ||
| Q2'25 | $3.38 | $3.51 | +3.8% | ||
| Q1'25 | $3.26 | $3.77 | +15.6% | ||
| Q4'24 | $3.30 | $3.75 | +13.6% |
Total return is +31.6% (1Y), outperforming the benchmark by +15.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +21.2% | +13.1% | — |
| 1Y | +31.6% | +15.6% | +3.7% |
| 3YCAGR | +25.9% | +10.5% | +14.6% |
| 5YCAGR | +8.9% | -3.5% | +17.0% |
| 10YCAGR | +13.8% | +0.5% | — |
The S&P 500 is at 30.8x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about The PNC Financial Services Group, Inc. (PNC) valuation, health, and returns.
The PNC Financial Services Group, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. trading near fair value (DCF: $259.20)
The PNC Financial Services Group, Inc. has multiple valuation anchors: DCF Intrinsic Value: $259.20 | Peer Relative Fair Value: $233.01 | Wall Street Analyst Target: $279.36 (implying +11.3% upside). A convergence of these signals offers higher conviction.
The PNC Financial Services Group, Inc. displays fair financial health with a composite quality score of 53/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 5.4%.
The PNC Financial Services Group, Inc. pays a 2.7% dividend yield, covered by a 38% payout ratio with 15 years of growth, supplemented by a 1.3% buyback yield.
The PNC Financial Services Group, Inc.'s current growth trajectory is Decelerating. The company achieved -7.0% 1Y revenue growth and +20.7% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 46 analysts, beating EPS expectations in 100% of recent quarters with a 14-quarter streak. The consensus price target represents a +11.3% change from current levels.
Investment risks for The PNC Financial Services Group, Inc. include: -17.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.64x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.