JP Morgan Stock Valuation

JPM
 Stock
  

USD 122.59  1.04  0.84%   

What is the enterprise value of JP Morgan? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as JP Morgan, is its stock price multiplied by the total number of shares outstanding, calculating JP Morgan's enterprise value requires a different approach. It uses JP Morgan's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
JP Morgan Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 84.25 Billion. Enterprise Value is expected to hike to about 356.2 B this year, although Tangible Asset Value will most likely fall to nearly 3459 B.
JP Morgan Chase owns a latest Real Value of $151.27 per share. The recent price of the firm is $122.59. At this time, the firm appears to be undervalued. Our model calculates the value of JP Morgan Chase from inspecting the firm fundamentals such as Return On Asset of 1.04 %, shares owned by insiders of 0.93 %, and Operating Margin of 39.89 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued equities and dropping overvalued equities since, sooner or later, asset prices and their ongoing real values will blend.
  
JP Morgan Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as JP Morgan's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

JP Morgan Most Recent Valuation Data

Price Book
1.43
EPS Estimate Next Quarter
2.96
Price Sales
2.98
Forward Annual Dividend Yield
0.0327
Dividend Share
4.0
Ex Dividend Date
2022-07-05
Undervalued
Today 122.59
Please note that JP Morgan's price fluctuation is very steady at this time. Calculation of the real value of JP Morgan Chase is based on 3 months time horizon. Increasing JP Morgan's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for JP Morgan Chase is useful when determining the fair value of the JP Morgan stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of JP Morgan. Since JP Morgan is currently traded on the exchange, buyers and sellers on that exchange determine the market value of JP Morgan Stock. However, JP Morgan's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
110.33
Downside
151.27
Real Value
153.13
Upside
Estimating the potential upside or downside of JP Morgan Chase helps investors to forecast how JP Morgan stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of JP Morgan more accurately as focusing exclusively on JP Morgan's fundamentals will not take into account other important factors:
Earnings
Estimates (12)
LowProjected EPSHigh
11.3711.9412.50
Details
Hype
Prediction
LowEstimated ValueHigh
120.77122.63124.49
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.950.970.98
Details
14 Analysts
Consensus
LowTarget PriceHigh
135.00181.47210.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use JP Morgan's intrinsic value based on its ongoing forecasts of JP Morgan's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against JP Morgan's closest peers. When choosing an evaluation method for JP Morgan Chase, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

JP Morgan Investments

2.58 Trillion

JP Morgan Valuation Drivers Correlation

Many accounts on the financial statements of JP Morgan Chase are highly interrelated and sometimes correlated. Consequently, when conducting JP Morgan's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of JP Morgan
Click cells to compare fundamentals

JP Morgan Valuation Trend

Knowing JP Morgan's actual value is paramount for traders to make sound investment determinations. JP Morgan's real value is not only important for the investor to make better decisions but also for a more accurate overall view of JP Morgan's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both JP Morgan's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

JP Morgan Market Cap

JP Morgan Chase is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Banks—Diversified industry is currently estimated at about 3.91 Trillion. JP Morgan holds roughly 369.85 Billion in market capitalization claiming about 9% of stocks in Banks—Diversified industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

JP Morgan Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining JP Morgan's current stock value. Our valuation model uses many indicators to compare JP Morgan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across JP Morgan competition to find correlations between indicators driving JP Morgan's intrinsic value. More Info.
JP Morgan Chase is currently regarded as number one stock in beta category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about  1.24  of Price to Book per Beta. The Price to Book Value is projected to pull down to 1.53. Comparative valuation analysis is a catch-all model that can be used if you cannot value JP Morgan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JP Morgan's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the JP Morgan's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates JP Morgan's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in JP Morgan and how it compares across the competition.

About JP Morgan Valuation

The stock valuation mechanism determines the current worth of JP Morgan Chase on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of JP Morgan Chase. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of JP Morgan Chase based exclusively on its fundamental and basic technical indicators. By analyzing JP Morgan's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of JP Morgan's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of JP Morgan. We calculate exposure to JP Morgan's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to JP Morgan's related companies.
Fiscal Year End
December
Industry
Banks-Diversified
Concentration
Diversified Banks
Full Time Employees
278.5 K
Service Category
Banks
Employer Id Number
13-2624428
Last ReportedProjected for 2022
Gross Profit121.6 B124.2 B
Profit Margin 0.38  0.34 
JPMorgan Chase Co. operates as a financial services company worldwide. JPMorgan Chase Co. was founded in 1799 and is headquartered in New York, New York. JP Morgan operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 278494 people.

JP Morgan Quarterly Enterprise Value

150.89 Billion

JP Morgan's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether JP Morgan's value is low or high relative to the company's performance and growth projections. Determining the market value of JP Morgan can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of JP Morgan represents a small ownership stake in the entity. As a stockholder of JP Morgan, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

JP Morgan Dividends Analysis For Valuation

Please note that JP Morgan has scaled down on payment of dividends at this time. Price to Earnings Ratio is expected to hike to 12.30 this year, although the value of Accumulated Retained Earnings Deficit will most likely fall to nearly 241 B.
There are various types of dividends JP Morgan can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of JP Morgan shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from JP Morgan Chase directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When JP Morgan pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of JP Morgan by the value of the dividends paid out.

JP Morgan Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as JP Morgan does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-27.60%
Revenue Growth-9.60%
Payout Ratio32.08%
Earnings Growth-27.00%
Enterprise Value To Revenue-3.76

JP Morgan Current Valuation Indicators

Valuation refers to the process of determining the present value of JP Morgan Chase and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value JP Morgan we look at many different elements of the entity such as JP Morgan's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. JP Morgan's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final JP Morgan's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as JP Morgan, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use JP Morgan's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes JP Morgan's worth.
Please see Risk vs Return Analysis. Note that the JP Morgan Chase information on this page should be used as a complementary analysis to other JP Morgan's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running JP Morgan Chase price analysis, check to measure JP Morgan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy JP Morgan is operating at the current time. Most of JP Morgan's value examination focuses on studying past and present price action to predict the probability of JP Morgan's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move JP Morgan's price. Additionally, you may evaluate how the addition of JP Morgan to your portfolios can decrease your overall portfolio volatility.
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Is JP Morgan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of JP Morgan. If investors know JP Morgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about JP Morgan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.27
Market Capitalization
359.5 B
Quarterly Revenue Growth YOY
-0.096
Return On Assets
0.0104
Return On Equity
0.14
The market value of JP Morgan Chase is measured differently than its book value, which is the value of JP Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of JP Morgan's value that differs from its market value or its book value, called intrinsic value, which is JP Morgan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because JP Morgan's market value can be influenced by many factors that don't directly affect JP Morgan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between JP Morgan's value and its price as these two are different measures arrived at by different means. Investors typically determine JP Morgan value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JP Morgan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.