Banks - Diversified · NYSE
Current Price
$309.25
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on JPMorgan Chase & Co. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers s deposit, investment and lending products, payments, and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, auto loan, and leasing services. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; payments and cross-border financing; and cash and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, payments, investment banking, and asset management to small business, large and midsized companies, local governments, and nonprofit clients; and commercial real estate banking services to investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits, and investment management products. The company also provides ATM, online and mobile, and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
ROIC (TTM)
3.0%
ROE (TTM)
16.3%
FCF Yield
12.09%
Based on trailing twelve-month data, JPM shows a free cash flow per share of N/A and a ROIC of 3.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 12.09% are important context metrics when evaluating JPM's stock valuation relative to peers.
The intrinsic value of JPM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether JPM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $309.25. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on JPMorgan Chase & Co.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Banks - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting JPM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For JPMorgan Chase & Co., this means projecting how much free cash flow the Banks - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. JPM's ROIC of 3.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For JPM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
