U.S. Bancorp has delivered a very strong 91.5% share price gain over the past three years, yet several valuation checks still point to the stock trading below an estimate of its intrinsic value. For investors, the focus is on how that gap between the market price and the Excess Returns model compares with a more mixed overall value score.
The 91.5% three year return suggests U.S. Bancorp has already rewarded patient shareholders. Any valuation upside now may matter more to new buyers than to those who held through the move.
Plans to expand business banking across faster growing U.S. states can support expectations for future earnings. The risk is that the cost and execution of this build out could weigh on profitability if revenue does not scale as hoped.
The stock earns a mixed valuation read, with a value score of 4 that points to some signs of undervaluation, but not a clear, across the board bargain.
The issue now is whether U.S. Bancorp’s current share price already reflects these growth plans, or if the intrinsic value estimate and market multiples still leave a reasonable margin between price and value.
Seize the momentum around U.S. Bancorp’s valuation gap and compare it with a curated list of other potential value opportunities using 50 high quality undervalued stocks.
Is U.S. Bancorp Still Cheap on Excess Returns?
The Excess Returns model for U.S. Bancorp starts with what shareholders earn on equity compared with the cost of that equity. On this view, the stock has an estimated intrinsic value of $101.50 per share, which implies the current price screens about 39.7% below that level.
The model uses a book value of $38.92 per share and a stable book value estimate of $42.64 per share, alongside a stable EPS estimate of $5.73 per share. With an average return on equity of 13.43% and a cost of equity of $3.32 per share, it arrives at an excess return of $2.41 per share that is capitalised into the intrinsic value. The recent decision by U.S. Bancorp to expand business banking across Florida, Georgia, Texas and Arizona helps explain why the market is weighing future growth against execution risk, even though the Excess Returns model still points to a sizeable discount.
On this Excess Returns view, U.S. Bancorp stock currently appears undervalued relative to its estimated intrinsic value.
Our Excess Returns analysis suggests U.S. Bancorp is undervalued by 39.7%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks.
USB Discounted Cash Flow as at Sep 2026
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