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Discover Financial Services
NYSE:DFS

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Discover Financial Services
NYSE:DFS
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Price: 120.99 USD 0.24%
Updated: Mar 1, 2024

Intrinsic Value

Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. [ Read More ]

The intrinsic value of one DFS stock under the Base Case scenario is 182.41 USD. Compared to the current market price of 120.99 USD, Discover Financial Services is Undervalued by 34%.

Key Points:
DFS Intrinsic Value
Base Case
182.41 USD
Undervaluation 34%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
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Fundamental Analysis

Discover Financial Navigates a Transformative 2023
2023-Q4 Earnings Call

Discover Financial Navigates a Transformative 2023

Discover Financial Services marked 2023 as a transformative year with major transitions and a continued emphasis on strong performance, culture, and customer experience. Recognized as a top employer and marking the year as the third best in earnings per share history, the company reported $2.9 billion in net income and an EPS of $11.26. However, the fourth quarter saw a dip in net income to $388 million from $1 billion the prior year. Despite strong revenue growth of 13% and loan growth of 15%, provision expenses rose by $1 billion due to higher charge-offs and delinquencies. Net interest margin slightly declined year-over-year to 10.98% while total expenses climbed by 19%, reflecting investments in compliance and risk management. For 2024, Discover expects modest loan growth, a net interest margin between 10.5% to 10.8%, and is preparing for four anticipated rate cuts of 25 basis points each.

Financials

Balance Sheet Decomposition
Discover Financial Services

Net Loans 114B
Investments 16.1B
PP&E 1.1B
Intangibles 255m
Other Assets 12B
Total Deposits 104B
Long Term Debt 18.9B
Other Liabilities 6.2B
Efficiency

Wall St
Price Targets

DFS Price Targets Summary
Discover Financial Services

Wall Street analysts forecast DFS stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for DFS is 125.72 USD with a low forecast of 105.04 USD and a high forecast of 176.4 USD.

Lowest
Price Target
105.04 USD
13% Downside
Average
Price Target
125.72 USD
4% Upside
Highest
Price Target
176.4 USD
46% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

DFS Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

DFS Price
Discover Financial Services

1M 1M
+14%
6M 6M
+31%
1Y 1Y
+8%
3Y 3Y
+29%
5Y 5Y
+86%
10Y 10Y
+158%
Annual Price Range
120.99
52w Low
80.49
52w High
123.72
Price Metrics
Average Annual Return 11.78%
Standard Deviation of Annual Returns 21.7%
Max Drawdown -72%
Shares Statistics
Market Capitalization 30.3B USD
Shares Outstanding 250 558 000
Percentage of Shares Shorted 1.51%

DFS Return Decomposition
Main factors of price return

What is price return decomposition?

DFS News

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Last Important Events
Discover Financial Services

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Sentiment Analysis
Discover Financial Services

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Company Profile

Discover Financial Services Logo
Discover Financial Services

Country

United States of America

Industry

Financial Services

Market Cap

30.3B USD

Dividend Yield

2.31%

Description

Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. The company is headquartered in Riverwoods, Illinois and currently employs 16,700 full-time employees. The company went IPO on 2007-06-14. The firm is a bank holding company, as well as a financial holding company. The company operates through two segments: Digital Banking and Payment Services. The company provides digital banking products and services and payment services through its subsidiaries. The company offers its customers credit card loans, private student loans, personal loans, home loans and deposit products. Its private student loans are primarily available to students attending eligible non-profit undergraduate and graduate schools. The company also offers certain post-graduate loans, including consolidation, bar study and residency loans. The company markets its private student loans through digital channels, direct mail, email, radio and television. Its payment services include PULSE, Diners Club and its Network Partners business, which provides, among other services, payment transaction processing and settlement services.

Contact

ILLINOIS
Riverwoods
2500 Lake Cook Rd
+12244050900.0
https://www.discover.com/

IPO

2007-06-14

Employees

16 700

Officers

Executive VP & CFO
Mr. John Thomas Greene
Executive VP & President of Consumer Banking
Mr. Daniel Peter Capozzi
CEO, President & Director
Mr. Michael G. Rhodes
Chief Accounting Officer, Senior VP & Controller
Ms. Shifra Kolsky
Head of Investor Relations
Mr. Eric Edmund Wasserstrom
Executive VP, Chief Legal Officer, General Counsel & Secretary
Ms. Hope D. Mehlman
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Vice President of Corporate Communications
Ms. Leslie Sutton
Executive VP and President of Credit & Decision Management
Mr. Keith E. Toney
Executive VP & Chief Risk Officer
Mr. Michael E. Roemer
Chief Audit Executive
Mr. Bill Chippendale
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See Also

Discover More
What is the Intrinsic Value of one DFS stock?

The intrinsic value of one DFS stock under the Base Case scenario is 182.41 USD.

Is DFS stock undervalued or overvalued?

Compared to the current market price of 120.99 USD, Discover Financial Services is Undervalued by 34%.