Discover Financial Services Stock 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 company has an average dividend yield.
  • This company is very stable.
  • This stock is on sale.
  • This company has stable growth.
  • This company is making money at a modest rate.

Inside the DFS Numbers

DFS Price
(Discover Financial Services stock price per share)
$98.88
[?] DFS Fair Price
(based on intrinsic value)
$105.11
[?] DFS Safety Price (based on a variable margin of safety) $84.09
[?] PE Ratio versus Sector 16% lower than other Financial stocks
[?] PE Ratio versus Industry 38% lower than other Credit Services stocks
[?] Cash Yield 12.71%
[?] Free Cash Flow Jitter 17%
[?] Dividend Yield 2%
Shares Shorted 7,540,127

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 7,540,127 shares shorted. With 271,512,150 shares available for purchase and an average trading volume over the past 10 trading days of 1,800,820, it would take at least 4.187 days for all of the short holders to cover their shorts.

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?

Discover Financial Services looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

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.