KeyCorp

Methodology

KeyCorp's regional banking operations generate cyclical earnings sensitive to interest rates, credit quality, and economic conditions in its Midwest and Northeast markets. The company's commercial banking focus creates revenue concentration. This calculation works best using normalized mid-cycle assumptions about net interest margins and credit losses—peak conditions overstate sustainable profitability.

Methodology

KeyCorp typically shows moderate PEG ratios for a regional bank, though growth rates are cyclical and can mislead. The company's sensitivity to regional economic health and interest rate positioning means earnings fluctuate significantly. For regional banks, valuation based on price-to-tangible-book relative to return on tangible equity provides more insight than earnings-based PEG ratios.

Methodology

KeyCorp pays a meaningful dividend representing an important total return component for regional bank investors. The company's dividend is subject to regulatory capital requirements and credit cycle positioning. PEGY is relevant for income-focused investors, though dividend sustainability depends on maintaining asset quality and profitability through economic cycles.