Is JPMorgan Chase & Co. (JPM) stock overvalued or undervalued?
Investors Observer gives JPMorgan Chase & Co. (JPM) a low evaluation score of 35 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. JPM currently holds better value than 35% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
JPM has a 12-month price-to-earnings (PE) ratio of 10.5 which puts it around the historic average of around 15. JPM is currently trading at an average value due to investors paying around this. that the action is worth in relation to its profits. JPM’s last 12-month earnings per share (EPS) of 15.81 justifies its stock price in the market. The tracking PE ratios do not take into account the company’s projected growth rate. So, some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. JPM has a 12-month forward PEG to Growth Ratio of 2.82. Markets are overvaluing JPM relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 15.810004 comes from its forward price / earnings ratio divided by its growth rate. . PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
JPM’s valuation metrics are low at its current price due to an overvalued PEG ratio due to strong growth. JPM’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full report on JPMorgan Chase & Co. (JPM) Stocks.