Investment News News 23 September 2025

January 31, 2026, 12:38 PM EST. U.S. Bancorp (USB) shares have gained 22.6% over the past year and 50% in five years, raising questions about further upside. The bank's stock trades around $56, while an Excess Returns model estimates an intrinsic value near $92.74, suggesting the shares could be 39.5% undervalued. The model calculates value by comparing the bank's return on equity (12.69%) against its cost of equity ($3.30 per share), indicating the bank creates shareholder value above investor expectations. Despite regulatory and interest rate concerns that influence market sentiment, the valuation tests show a mixed picture, with USB scoring 4 of 6 on metrics screening. Investors may find these insights useful amid ongoing debates on bank profitability, balance sheet strength, and growth prospects, as P/E ratios provide a straightforward earnings valuation measure.