Is JPMorgan Chase & Co (JPM) overvalued?
On Equity Rank's model estimate, JPM trades 46% above its fair value. JPMorgan Chase & Co (JPM) last closed at $334.49; the multi-method model fair value is $229.82.
| Price | Model fair value | Price vs model |
|---|---|---|
| $334.49 | $229.82 | 46% above |
What the answer rests on
- 0 of 12 valuation methods put JPM's value above its price and 12 put it below, so the methods mostly agree.
- JPM trades at 14.8 times its last year's earnings, against a median of 12.2 for 253 profitable Banks companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 30% above to 61% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind JPM's fair value · What prices assume · Other companies