Discover Financial Services Valuation
DFSDelisted Stock | USD 200.05 0.50 0.25% |
At this time, the firm appears to be overvalued. Discover Financial shows a prevailing Real Value of $159.63 per share. The current price of the firm is $200.05. Our model computes the value of Discover Financial from reviewing the firm fundamentals such as Profit Margin of 0.36 %, shares outstanding of 251.65 M, and Current Valuation of 54.07 B as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
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 200.05 | Real 159.63 | Hype 200.05 | Naive 198.32 |
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: Discover Financial Total Value Analysis
Discover Financial Services is currently forecasted to have company total value of 54.07 B with market capitalization of 50.34 B, debt of 16.25 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 companyTakeover Price | Market Cap | Debt Obligations | Cash |
54.07 B | 50.34 B | 16.25 B | 10 B |
Discover Financial Investor Information
About 87.0% of the company shares are held by institutions such as insurance companies. The book value of Discover Financial was currently reported as 71.16. The company recorded earning per share (EPS) of 18.72. Discover Financial last dividend was issued on the 23rd of May 2025. The entity had 1:5 split on the January 31, 2014. Discover Financial Services is not in a good financial situation at the moment. It has a very high risk of going through financial straits in July.Discover Financial Asset Utilization
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 13.56 percent. This implies that the Company is making $0.14 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.Discover Financial Ownership Allocation
Discover Financial holds a total of 251.65 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 May 15, 2025, Representative Julie Johnson 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 20.02 B. Total Income to common stockholders was 4.54 B with profit before taxes, overhead, and interest of 12.59 B.Discover Financial Past Distributions to stockholders
About Discover Financial Valuation
The delisted 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 Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. The company was incorporated in 1960 and is based in Riverwoods, Illinois. Discover Financial operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 16700 people.
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
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 | 251 M | |
Quarterly Earnings Growth Y O Y | 0.305 | |
Forward Price Earnings | 14.4928 |
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Consideration for investing in Discover Stock
If you are still planning to invest in Discover Financial check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Discover Financial's history and understand the potential risks before investing.
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