* Note: Prices are in Million (M) USD.
Description:
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is incorporated in Delaware. As a Bulge Bracket bank, it is a major provider of various investment banking and financial services. It is one of America's Big Four banks, along with Bank of America, Citigroup, and Wells Fargo. JPMorgan Chase is considered to be a universal bank and a custodian bank. The J.P. Morgan brand is used by the investment banking, asset management, private banking, private wealth management, and treasury services divisions.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $420,327 M
Debt : $485,095 M
EBITDA : $79,037 M
Net Debt (Debt - Cash): $64,768 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - global
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 14.84
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-34,414 M
Average Revenue: $128,475 M
Revenue Converted To Free Cash Flow (%): -26.8%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $270,789 M
Revenue 4 Years Ago (2020-12-31): $129,843 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $2,879 M
Share Count 5 Years Ago (2020-12-31): $3,087 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $21.02
Trailing 12-Month Earnings Per Share (EPS): $19.49
Average Earnings Per Share (EPS): $20.26
Dividend Per Share (DPS): $5
Payout Ratio: 26%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 10.9%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $301
52-Week Low: $196
Threshold Price (15% Above 52-Week Low): $226
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $809,471 M
Since Market Cap is between 500B - 1 Trillion, 4 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above JPMorgan Chase & Co (JPM) stock.
Last 20 Years Avg PE
13.04, Fair Value PE
15, Industry Based PE
12, Growth Based PE
21.71, ROE Based PE
10.85, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
15.03. Value-Trades has assined P/E value
15.03. An average (Current Year EPS + Next Year EPS) earning per share is
$20.255.
Fair value using multiple P/Es (blended): $304.52 (PE 15.03 × EPS $20.26)
So the Final Fair Value is: $304.52
