3 models fit Truist Financial Corporation Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)
Valued as a bank: Residual income, P/E comparison, Dividend discount, and Graham number.
ACCE opinionTruist Financial Corporation Common Stock (TFC)
Fair value (3 models)
$51.81
ACCE price target
$51.50
Rating
Fairly valued
Horizon
12 months
Fair value published on 19 Oct 2026, 17:05 CEST; previously $50.49 since 18 Oct 2026, 15:05 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $48.00 since 20 Sept 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:05 CEST.
Price used: $48.44 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison, Graham number, and Residual income.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
6.5% below
+7.0% to fair value
ACCE score
51
out of 100
Analysts
32% buy
22 covering
P/E
12.3x
forward 9.6x
1-year return
+11.1%
Dividend yield
4.36%
Truist Financial Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Truist Financial is a Charlotte-based regional bank whose core businesses are commercial and retail banking, wealth management, and insurance brokerage, the last of which gives it fee income that is less sensitive to rate cycles than lending. At a $56.6B market cap, it trades at 10.6x trailing earnings and 9.4x forward, a discount to most of the large-bank group, while reporting 8.2% revenue growth and a 9.1% return on equity. That ROE is the number to test: it is respectable but not exceptional, so the case rests on whether earnings growth outpaces the multiple compressing further. The 39.8% operating margin and 100% gross margin are reporting-convention artifacts for a bank and should not be read as pricing power. The score of 69 and the absence of index membership suggest this is a value candidate on the cheap multiple rather than a quality compounder, and it warrants a deeper look at net interest margin trends and credit costs before anyone treats the discount as an opportunity.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Negative 5-year revenue CAGR
Revenue declined at -4.0% CAGR over 5 years, despite recent +8.2% YoY growth. Suggests structural headwinds or prior contraction that may not be fully resolved.
moderate
Low ROE for bank
ROE of 9.1% is weak for a regional bank. Peers typically target 10%+ in normal cycles, signaling capital efficiency concerns or margin pressure.
moderate
Insider selling concentration
Last 10 disclosures show $1.58M in sales and $0.00M in buys. Absence of insider buying alongside selling warrants attention.
AI research notes
AI-assisted·How I use AIWritten Oct 16, 2026 · figures from 2026-10-11 · prices to Oct 23, 2026
Why it could do well
Recent earnings beat by 13.9% suggests management is executing better than expected, supporting upside to analyst targets.
Free cash flow yield of 10.2% and forward P/E of 9.3x versus sector median 11.8x indicate the stock trades at a meaningful discount.
Consensus fair value of $51.09 sits 10.8% above the current price, with all four valuation models in agreement on upside.
Why it could disappoint
Five-year revenue decline of 4.0% per year reveals a shrinking business, not a turnaround story.
ROE of 9.1% and ROIC of 3.2% remain well below cost of capital, destroying shareholder value despite recent earnings beats.
Debt to equity of 1.07 leaves limited room to absorb credit losses if commercial real estate stress emerges.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Jan 20, 2027
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TFC's valuation models land
Price
$48.44
Model fair value
$51.81
Model range
$40.12 to $70.42
Fair value $51.81
Price $48.44
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
Graham number
P/E comparison
Residual income
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores