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Discover Financial Services (Discover Financial Services) Price-to-Free-Cash-Flow

: 3.81 (As of Today)
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As of today (2024-04-19), Discover Financial Services's share price is $124.27. Discover Financial Services's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $32.61. Hence, Discover Financial Services's Price-to-Free-Cash-Flow Ratio for today is 3.81.

The historical rank and industry rank for Discover Financial Services's Price-to-Free-Cash-Flow or its related term are showing as below:

DFS' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 1.37   Med: 5.46   Max: 10.26
Current: 3.82

During the past 13 years, Discover Financial Services's highest Price-to-Free-Cash-Flow Ratio was 10.26. The lowest was 1.37. And the median was 5.46.

DFS's Price-to-Free-Cash-Flow is ranked better than
63.6% of 239 companies
in the Credit Services industry
Industry Median: 6.62 vs DFS: 3.82

Discover Financial Services's Free Cash Flow per Share for the three months ended in Dec. 2023 was $11.19. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was $32.61.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Discover Financial Services was 30.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 18.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 15.30% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 16.20% per year.

During the past 13 years, Discover Financial Services's highest 3-Year average Free Cash Flow per Share Growth Rate was 41.90% per year. The lowest was -11.30% per year. And the median was 14.80% per year.


Discover Financial Services Price-to-Free-Cash-Flow Historical Data

The historical data trend for Discover Financial Services's Price-to-Free-Cash-Flow can be seen below:

* 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.

* Premium members only.

Discover Financial Services Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Price-to-Free-Cash-Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.59 4.68 5.95 3.94 3.46

Discover Financial Services Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Price-to-Free-Cash-Flow Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.88 4.58 2.97 3.46 -

Competitive Comparison

For the Credit Services subindustry, Discover Financial Services's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution

For the Credit Services industry and Financial Services sector, Discover Financial Services's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Discover Financial Services's Price-to-Free-Cash-Flow falls into.



Discover Financial Services Price-to-Free-Cash-Flow Calculation

Discover Financial Services's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=124.27/32.613
=3.81

Discover Financial Services's Share Price of today is $124.27.
Discover Financial Services's Free Cash Flow per Share 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 $32.61.

* 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.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Discover Financial Services  (NYSE:DFS) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Discover Financial Services Price-to-Free-Cash-Flow Related Terms

Thank you for viewing the detailed overview of Discover Financial Services's Price-to-Free-Cash-Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


Discover Financial Services (Discover Financial Services) Business Description

Traded in Other Exchanges
Address
2500 Lake Cook Road, Riverwoods, IL, USA, 60015
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.
Executives
Kathy Lonowski director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael Shepherd director 567 HALE STREET, PALO ALTO CA 94301
Jason Strle officer: EVP, Chief Information Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Jason P. Hanson officer: EVP, Pres. - Payment Services 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Daniela O'leary-gill director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Beverley A Sibblies director 2700 SANDERS ROAD, PROSPECT HEIGHTS IL 60070
Robert Andrew Eichfeld officer: EVP - Chief HR & Admin Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Carlos Minetti officer: EVP, Pres. - Consumer Banking 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Hope Mehlman officer: EVP, Chief Legal Officer & GC 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael H Moskow director 444 WEST LAKE STREET, STE. 4700, CHICAGO IL 60606
John B Owen director REGIONS FINANCIAL CORPORATION, 1900 5TH AVENUE NORTH, 21ST FLOOR, BIRMINGHAM AL 35203
John Greene officer: EVP & Chief Financial Officer 51 LIME STREET, LONDON X0 EC3M 7DQ
Shifra Kolsky officer: SVP, Controller and CAO 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Michael E Roemer officer: EVP, Chief Risk Officer AMERICAN INTERNATIONAL GROUP, INC., 70 PINE STREET, NEW YORK NY 10270
Daniel Peter Capozzi officer: EVP, Pres - Cr Ops & Dec Mgmt 2500 LAKE COOK ROAD, RIVERWOODS IL 60015