TFS Financial (TFSL) Valuation: Steady Growth and Investor Optimism Amid High P/E Ratio

TFS Financial has reported steady annual growth in revenue and net income, driving investor optimism. The stock has climbed 8.4% this year and has a three-year total shareholder return of 25.1%. However, its high price-to-earnings ratio of 41.2x, significantly above the industry average and its estimated fair value, raises questions about its valuation. The DCF model estimates the fair value at $1.39 per share, far below the recent price, suggesting the current market valuation may be difficult to justify.