JPMorgan Chase & Co. (JPM) Fair Value & PE Analysis
Banks - Diversified · NYSE
Current Price
$344.71
PE Ratio (TTM)
14.8x
Intrinsic Value
$441.59
+21.9% margin of safety
What Is JPMorgan Chase & Co.'s Fair Value?
As of 2026-07-29, applying a 15.0x earnings multiple to JPMorgan Chase & Co.'s (JPM) earnings per share of $23.33 yields a fair value estimate of $441.59 per share, versus a market price of $344.71.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $346.4 to $551.45. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · JPM intrinsic value (DCF view)
Is JPMorgan Chase & Co. (JPM) Overvalued?
At $344.71, JPM trades about 21.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Massive Scale and Diversification
JPM's immense scale across retail, commercial, and investment banking creates significant operating efficiencies. Diversification across business lines provides resilience against sector-specific downturns.
↑Deep Customer Relationships
Long-standing relationships with individuals and corporations generate sticky deposit bases and cross-selling opportunities. This loyalty is built on trust and a comprehensive suite of financial services.
↑Technological Investment and Data
Substantial investments in technology enable efficient operations and personalized customer experiences. Proprietary data analytics offer insights for risk management and product development.
INVESTMENT RISKS
↓Interest Rate Sensitivity
JPM's profitability is significantly influenced by interest rate movements. A sustained period of low rates could compress net interest margins.
↓Economic Downturn Impact
A severe economic recession could lead to increased loan defaults and reduced demand for financial services. This would negatively affect JPM's asset quality and revenue.
↓Cybersecurity Threats
As a large financial institution, JPM is a prime target for cyberattacks. A successful breach could result in significant financial losses and reputational damage.
Base case
JPM base case PE valuation
Intrinsic Value
$441.59
Margin of safety
+21.9%
Expected annual return
+5.1%
Base case assumptions: 8.7% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the JPM PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for JPMorgan Chase & Co. respond.
Open PE Calculator for JPMCompany Overview
JPMorgan Chase & Co. operates as a bank and financial holding company in the United States, rest of North America, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and the Caribbean. It operates in three segments: Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management. The company offers deposit, investment and lending products, and cash management; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit cards, payment solutions, travel services, merchant offers, lifestyle benefits, auto loans, and leases to consumers and small businesses through bank branches, ATMs, and digital and telephone banking. It also provides investment banking, market-making, financing, custody, and securities products and services; corporate strategy and structure advisory, equity and debt market capital-raising, and loan origination and syndication services; cash and derivative instruments, risk management solutions, prime brokerage, clearing, and research; and fund services, liquidity and trading services, and data solutions products for large corporations, financial institutions, merchants, start-ups, small and midsized companies, local governments, municipalities, nonprofits, and commercial real estate clients. In addition, the company offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; retirement products and services, estate planning, lending, deposits, and investment management products to high-net-worth clients; and financial transaction processing. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
Financial Metrics — JPM PE Stock Valuation Data
PE Ratio (TTM)
14.8x
PEG Ratio
0.78
Earnings Yield
6.77%
ROE (TTM)
17.8%
Revenue/Share (TTM)
$106.73
Dividend Yield
1.74%
Debt/Equity
3.30x
Frequently Asked Questions
What is the PE ratio of JPM?
The trailing twelve-month PE ratio of JPM reflects how much investors pay per dollar of JPMorgan Chase & Co.'s earnings. This metric is most useful when compared to Banks - Diversified peers and the company's own historical range.
Is JPM overvalued based on PE ratio?
JPM's PE of 14.8x combined with a PEG ratio of 0.78 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Diversified, a DCF analysis may be more appropriate.
How do I value JPM stock using PE ratio?
To value JPMorgan Chase & Co. using PE: (1) Compare the current PE (14.8x) against the Banks - Diversified median to assess relative pricing, (2) check the PEG ratio (0.78) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of JPM?
JPM's PEG ratio is 0.78, calculated by dividing the PE ratio (14.8x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for JPM stock valuation?
PE ratio gives a quick relative read — how JPM is priced versus Banks - Diversified peers. DCF provides an absolute value based on projected free cash flows. For JPM, with a strong ROE of 17.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See JPM DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value JPM with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.