InvestorsObserver gives JPMorgan Chase & Co. (JPM) a weak valuation score of 38 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. JPM currently holds a better value than 38% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
JPM gets a 38 Valuation Rank today. Find out what this means to you and get the rest of the rankings on JPM!
JPM has a trailing twelve month Price to Earnings (PE) ratio of 9.6. The historical average of roughly 15 shows a good value for JPM stock as investors are paying lower share prices relative to the company's earnings. JPM's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 15.35 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
JPM has a 12 month forward PE to Growth (PEG) ratio of 2.57. Markets are overvaluing JPM in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 15.3500003's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
All together these valuation metrics paint a pretty poor picture for JPM at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for JPM are worse than the average of the market resulting in a valuation score of 38.
Click Here to get the full Report on JPMorgan Chase & Co. (JPM) stock.