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Where JPMorgan Chase Stands among Its Peers

Andrew Brunton
Where JPMorgan Chase Stands among Its Peers

The price-to-book value (or PBV) ratio is considered the best multiple to use in valuing companies in the insurance, finance, and banking spaces, which have a significant amount of liquid and tangible assets on their books. At less than 1.0, a stock’s PBV multiple is considered undervalued. Currently, JPMorgan Chase (JPM) is trading at a PBV multiple of 1.65x, a significant premium to the industry average of ~1.48x.