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Assessing U.S. Bancorp (USB) Valuation After Recent Share Price Momentum And Modest Undervaluation Signals

Simply Wall St · 01/05 10:20

U.S. Bancorp (USB) is back on investors’ radar after recent share price moves. The stock last closed at $53.93 as the bank continues to trade in line with broader sentiment toward large U.S. lenders.

See our latest analysis for U.S. Bancorp.

Recent trading has been mixed, with a 1 day share price return of 1.07% alongside a 7 day share price decline of 1.05%. However, a 90 day share price return of 13.54% and a 1 year total shareholder return of 15.55% suggest that momentum has been building over time rather than fading.

If U.S. Bancorp’s move has you reviewing your watchlist, this can be a good moment to broaden your search and check out fast growing stocks with high insider ownership.

With U.S. Bancorp trading at $53.93, a value score of 4 and an estimated intrinsic value implying roughly a 40% discount, is this a genuine mispricing, or is the market already baking in future growth?

Most Popular Narrative Narrative: 6.2% Undervalued

Compared with the last close at $53.93, the most followed narrative sees fair value closer to the high 50s, pointing to a modest valuation gap.

Analysts are assuming U.S. Bancorp's revenue will grow by 8.5% annually over the next 3 years. Analysts assume that profit margins will shrink from 25.5% today to 22.8% in 3 years time.

Read the complete narrative.

Curious how steady top line growth, slightly slimmer margins, and a richer future earnings multiple can still support a higher value? The narrative spells out the path.

Result: Fair Value of $57.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that path depends on U.S. Bancorp keeping credit issues and commercial real estate risks in check, while also managing higher regulatory and cybersecurity costs that could squeeze margins.

Find out about the key risks to this U.S. Bancorp narrative.

Another View: Market Multiple Sends A Different Signal

While the narrative and fair value estimate point to U.S. Bancorp being 6.2% undervalued, the current P/E of 12.3x sits slightly above the US Banks industry at 11.8x, yet below the peer average of 19x and a fair ratio of 14.5x. That mix hints at both some valuation risk and a possible opportunity, so which side do you think the market is pricing in?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:USB P/E Ratio as at Jan 2026
NYSE:USB P/E Ratio as at Jan 2026

Build Your Own U.S. Bancorp Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a custom view in just a few minutes by starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding U.S. Bancorp.

Looking for more investment ideas?

If U.S. Bancorp has you thinking more broadly about your portfolio, do not stop here. This is your chance to spot other opportunities before everyone else.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.