JPMorgan Chase & Co. (JPM) Fair Value & PE Analysis
Banks - Diversified · NYSE
Current Price
$320.72
PE Ratio (TTM)
15.2x
Intrinsic Value
$382.32
+16.1% margin of safety
What Is JPMorgan Chase & Co.'s Fair Value?
As of 2026-06-12, applying a 15.0x earnings multiple to JPMorgan Chase & Co.'s (JPM) earnings per share of $21.12 yields a fair value estimate of $382.32 per share, versus a market price of $320.72.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $300.01 to $477.4. 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 our PE model works · Recalculate in PE mode · JPM intrinsic value (DCF view)
Is JPMorgan Chase & Co. (JPM) Overvalued?
At $320.72, JPM trades about 16.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Dominant Scale and Diversification
JPMorgan Chase's immense size across retail, investment banking, and asset management creates significant economies of scale. This diversification provides resilience against sector-specific downturns.
↑Brand Trust and Customer Loyalty
Decades of operation and consistent service have built a strong brand reputation. This trust fosters deep customer relationships, particularly in wealth management and retail banking.
↑Technological Investment and Innovation
Significant investments in technology, including exploring tokenized deposits, position JPM to adapt to evolving financial landscapes. This proactive approach secures future competitive advantages.
INVESTMENT RISKS
↓Regulatory Scrutiny and Compliance Costs
As a global systemically important bank, JPM faces stringent regulations. Changes in policy or increased compliance burdens can impact profitability and operational flexibility.
↓Intensifying Competition in Niche Markets
The potential acquisition of private credit assets highlights competition. Emerging fintechs and specialized funds challenge traditional banking models in lucrative areas.
↓Macroeconomic Sensitivity and Interest Rate Risk
The banking sector is inherently tied to economic cycles and interest rate movements. Unexpected economic downturns or rapid rate shifts can negatively affect loan portfolios and net interest margins.
Base case
JPM base case PE valuation
Intrinsic Value
$382.32
Margin of safety
+16.1%
Expected annual return
+3.6%
Base case assumptions: 7.6% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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
Operating globally, JPMorgan Chase & Co. is a prominent financial services institution. Its business is organized into four main divisions: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The Consumer & Community Banking (CCB) division caters to individual consumers and small businesses. For consumers, it delivers deposit, investment, and lending products, along with payment services, including residential mortgages, home equity loans, credit cards, auto loans, and leasing. Small businesses receive lending, deposit, cash management, and payment solutions, in addition to mortgage origination and servicing. The Corporate & Investment Bank (CIB) segment delivers a broad spectrum of investment banking offerings. These encompass strategic and structural advisory, capital-raising for equity and debt markets, loan origination and syndication, international payments, and cross-border financing. It also deals with cash and derivative instruments, provides risk management solutions, prime brokerage, and research. Furthermore, CIB provides securities services, such as custody, fund accounting, administration, and securities lending, specifically for asset managers, insurers, and various public and private investment funds. Commercial Banking (CB) supplies financial remedies, including lending, payment processing, investment banking, and asset management, to small, large, and mid-sized businesses, local government entities, and non-profit organizations. It additionally specializes in commercial real estate banking for investors, developers, and owners of diverse property types, such as multifamily, office, retail, industrial, and affordable housing. The Asset & Wealth Management (AWM) segment provides multi-asset investment management services across equities, fixed income, alternative investments, and money market funds for both institutional and individual investors. Its offerings further extend to retirement products, brokerage services, custody, trusts and estates, various lending options (loans, mortgages), deposits, and comprehensive investment management products. Beyond its core segments, the firm also supports clients through ATM access, online and mobile banking platforms, and telephone banking services. Established in 1799, JPMorgan Chase & Co. maintains its headquarters in New York, New York.
Financial Metrics — JPM PE Stock Valuation Data
PE Ratio (TTM)
15.2x
PEG Ratio
6.08
Earnings Yield
6.59%
ROE (TTM)
16.3%
Revenue/Share (TTM)
$102.23
Dividend Yield
1.84%
Debt/Equity
3.39x
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 15.2x combined with a PEG ratio of 6.08 provides a growth-adjusted perspective. A PEG above 2.0 suggests JPM may be richly valued even accounting for growth. 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 (15.2x) against the Banks - Diversified median to assess relative pricing, (2) check the PEG ratio (6.08) 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 6.08, calculated by dividing the PE ratio (15.2x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 16.3%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.