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    Evaluating Fifth Third (FITB) After a 14% Monthly Rally: Is the Bank Still Undervalued?

    Simply Wall St·12/25/2025 19:19:35
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    Fifth Third Bancorp (FITB) has quietly put together a strong run, with the stock up about 14% over the past month and 16% in the past year, outpacing many regional bank peers.

    See our latest analysis for Fifth Third Bancorp.

    That 13.91% 1 month share price return, alongside a 16.15% 1 year total shareholder return, suggests momentum is building as investors warm to Fifth Third’s growth profile and risk outlook at around $48.22 per share.

    If strong regional bank performance has your attention, this could be a good moment to explore solid balance sheet and fundamentals stocks screener (None results) as potential next candidates for your watchlist.

    With earnings growing faster than revenue and the shares still trading at a notable discount to some value estimates, investors face a key question: Is Fifth Third genuinely undervalued today, or is the market already pricing in its future growth?

    Most Popular Narrative Narrative: 6.3% Undervalued

    With Fifth Third shares at $48.22 versus a narrative fair value of about $51.50, the spread points to modest upside if the growth story delivers.

    Several research updates highlight projected peer leading profitability metrics, including return on assets above 1.5 percent and return on tangible common equity above 20 percent once synergies are realized, supporting higher valuation multiples.

    Read the complete narrative.

    Curious how a regional bank earns premium style multiples? The narrative leans on ambitious revenue expansion, resilient margins, and a punchy profit trajectory. Want the full playbook behind that valuation call?

    Result: Fair Value of $51.50 (UNDERVALUED)

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

    However, the narrative could be knocked off course if the Comerica integration stumbles or commercial loan demand stays weaker for longer than analysts expect.

    Find out about the key risks to this Fifth Third Bancorp narrative.

    Another View: Market Ratios Tell A Different Story

    Step away from narratives and our SWS fair ratio, and the market looks less generous. FITB trades on a 14.1x price to earnings multiple, above the US banks average of 11.9x, yet below its 19.5x fair ratio. This leaves investors to decide if this is cushion or complacency.

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

    NasdaqGS:FITB PE Ratio as at Dec 2025
    NasdaqGS:FITB PE Ratio as at Dec 2025

    Build Your Own Fifth Third Bancorp Narrative

    If you see things differently or want to dig into the numbers yourself, you can shape a custom narrative in just a few minutes: Do it your way.

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

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    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.