Discover Financial ServicesStock Price and Value Analysis

Should you buy Discover Financial Services stock? (NYSE:DFS). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This stock is available at a great discount!
  • This company has an average dividend yield.
  • This company is very stable.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.

DFS Free Cash Flow Trend

Based on historical returns, we believe that Discover Financial Services can grow its free cash at a rate of about 1%. That's positive!

Free Cash Flow trendline for DFS
Free Cash Flow trendline for Discover Financial Services

Inside the DFS Numbers

DFS Price
(Discover Financial Services stock price per share)
$73.67
[?] DFS Fair Price
(based on intrinsic value)
$93.65
[?] DFS Safety Price (based on a variable margin of safety) $74.92
[?] PE Ratio versus Sector 4% lower than other Financial stocks
[?] PE Ratio versus Industry 30% lower than other Credit Services stocks
[?] Cash Yield 13.76%
[?] Free Cash Flow Jitter 37%
[?] Dividend Yield 2%

Is Discover Financial Services Stock on Sale?

We believe that Discover Financial Services may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Discover Financial Services looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy DFS Stock?

Does Discover Financial Services have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.