EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Discover Financial Services's Enterprise Value is $24,507 Mil.
Discover Financial Services's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was $8,260 Mil. Therefore, Discover Financial Services's EV-to-FCF for today is 2.97.
The historical rank and industry rank for Discover Financial Services's EV-to-FCF or its related term are showing as below:
DFS'
s EV-to-FCF Range Over the Past 10 Years
Min: 2.91 Med: 7.88 Max: 14.72
Current: 2.91
During the past 13 years, the highest EV-to-FCF of Discover Financial Services was 14.72. The lowest was 2.91. And the median was 7.88.
DFS's EV-to-FCF is ranked better than 78.21% of 257
companies
in the Credit Services industry
Industry Median: 12.12
vs DFS: 2.91
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Discover Financial Services's EV-to-FCF
For the Credit Services subindustry, Discover Financial Services's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Discover Financial Services's EV-to-FCF Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Discover Financial Services's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Discover Financial Services's EV-to-FCF falls into.
Discover Financial Services's current Enterprise Value is $24,507 Mil.
Discover Financial Services's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,260 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
Discover Financial Services's PE Ratio for today is calculated as:
Discover Financial Services's share price for today is $127.70.
Discover Financial Services's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $8.770.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Discover Financial Services EV-to-FCF Related Terms
Thank you for viewing the detailed overview of Discover Financial Services's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Discover Financial Services (Discover Financial Services) Business Description
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
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