Truist Financial Stock Fair Value Calculation – Truist Financial to Sell 20% Stake in Subsidiary for $1.95B in 2023 with Mubadala Investment and Stone Point Capital Co-Investing.
February 20, 2023
Trending News 🌥️
Truist Financial ($NYSE:TFC) has announced a deal to sell a 20% stake in its insurance subsidiary, Truist Insurance, for $1.95B by 2023. The sale will be led by Mubadala Investment and Stone Point Capital, a private equity firm, with multiple co-investors joining the transaction. This is a significant capital injection into the company, which has seen increased demand for its services amid a challenging economic environment. The significant capital injection will leverage the growth potential of Truist Insurance and enable Truist Financial to scale up operations, capitalize on strategic opportunities, and enhance its competitive position in the insurance industry.
It will also help the company to expand its product portfolio and services while making key investments in technology and digital capabilities to drive future growth and profitability. The co-investors in the sale have great confidence in the future potential of Truist Insurance under Truist Financial’s leadership going forward. Their involvement highlights the value that Truist Insurance holds and its ability to attract top-tier investors.
Stock Price
On Thursday, TRUIST FINANCIAL announced that it plans to sell a 20% stake in its subsidiary, signaling a major shift in the company’s corporate strategy. As a result, TRUIST FINANCIAL’s stock opened at the low end of its 52-week range at $48.2, but eventually closed at $48.0, representing a 1.9% decline from the previous closing price of $48.9. This news makes it a compelling time for investors to consider adding TRUIST FINANCIAL to their portfolio. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Truist Financial. More…
| Total Revenues | Net Income | Net Margin |
| – | 5.93k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Truist Financial. More…
| Operations | Investing | Financing |
| 7.89k | -32.06k | 25.59k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Truist Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 555.25k | 494.72k | – |
Key Ratios Snapshot
Some of the financial key ratios for Truist Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Truist Financial Stock Fair Value Calculation
We at GoodWhale have conducted an in-depth analysis of the well-being of TRUIST FINANCIAL. Based on our proprietary Valuation Line, we have concluded that the fair value of the TRUIST FINANCIAL stock is around $51.6. Currently, the stock is traded at $48.0, which constitutes a 6.9% undervaluation of the stock. This presents a great opportunity for anyone looking to invest in the company. More…
Peers
Truist Financial Corp is a large financial institution that offers a variety of banking and financial services to its customers. Its competitors include Public Bank Bhd, Bandhan Bank Ltd, and Bank of Georgia Group PLC.
– Public Bank Bhd ($KLSE:1295)
Public Bank Bhd is a Malaysian bank holding company. It was founded in 1966 and is headquartered in Kuala Lumpur. The company provides banking and financial services to individuals, businesses, and governments in Malaysia, Singapore, Cambodia, and Vietnam. Public Bank Bhd has a market cap of 84.24B as of 2022. The company’s main business activities are deposit-taking, loan and financing, foreign exchange, money market and treasury operations, and other related services.
– Bandhan Bank Ltd ($BSE:541153)
Bandhan Bank Ltd is an Indian banking and financial services company headquartered in Kolkata, West Bengal. It was founded in 2001 by Chandra Shekhar Ghosh. As of March 2019, the bank had 9,421 branches and 13,958 ATMs across 2,764 cities in India. Bandhan Bank offers banking products and services including savings and deposit accounts, loans, debit and credit cards, money transfer, and insurance. The bank had a market capitalization of 432.67 billion as of March 2019.
– Bank of Georgia Group PLC ($LSE:BGEO)
Bank of Georgia Group PLC is a leading banking group in Georgia, offering a wide range of banking and financial services to individuals, businesses and corporate clients. The Group has a significant market share in deposits, loans, credit cards and other key banking indicators. It is also the largest non-bank financial institution in the country. The Group employs around 4,000 people and serves over 1.5 million customers through a network of 97 branches and 202 ATMs across Georgia.
Summary
Truist Financial announced an agreement to sell 20% of its subsidiary to Mubadala Investment and Stone Point Capital in 2023 for $1.95 billion. The strategic move is expected to open new revenue streams and provide capital for growth. Investors should take note of the potential opportunities this move presents, including greater diversification, access to new markets and client bases, and entry into innovative services.
Additionally, with two well-established firms investing in Truist, investors should gain confidence in the company’s financial stability and future prospects. Analysts are expected to closely monitor the impact of this move on Truist’s share price and its performance relative to its peers.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
