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Discover Financial Services DFS Stock Quote

| Rating as of

NYSE: DFS

Last close prices updated as of Jan 27, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 117.57
  • Sector Financial Services
  • Industry Credit Services
  • Investment Style Mid Blend
  • Day Range 115.69  –  118.40
  • Year Range 87.64  –  129.12
  • Market Cap 31.3912 Bil
  • Volume / Avg 2.4 Mil /  2.0 Mil
  • Price / Sales 2.45
  • Price / Book 2.15
  • Forward Div Yield 2.36%
  • Trailing Div Yield 1.96%

Morningstar‘s Stock Analysis DFS

Valuation
Currency in
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Discover Ends 2022 With Impressive Q4 Results, but Credit Costs Set to Rise Further in 2023

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

Narrow-moat-rated Discover Financial reported good fourth-quarter results, though strong interest income growth was offset by higher credit provisioning. Net revenue increased 27% year over year and 7.3% sequentially to $3.73 billion. Earnings per share rose 4% from last year to $3.77, which translates to a return on equity of 28%. As we incorporate these results, we are maintaining our $146 fair value estimate. While we do see the shares as currently undervalued, we note that Discover is materially exposed to uncertain macroeconomic conditions, and its near-term results will be affected by factors outside its control.

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Key Statistics DFS

Company Profile DFS

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.

Contact
2500 Lake Cook Road
Riverwoods, IL, 60015
Industry Credit Services
Employees 16,700

Related Articles DFS

FAQs for Discover Financial Services Stock

Yes. DFS has a forward dividend yield of 2.36%. See DFS’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

DFS’s market cap is 31.39 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

DFS’s stock style is Mid Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

DFS’s price/sales is 2.45.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

DFS’s price/forward earnings is 7.14.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

DFS’s price/book is 2.15.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See DFS’s valuation ratios compared to the Market Index.

DFS’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare DFS’s historical performance against its industry peers and the overall market.