U.S. Markets closed

Is JPMorgan Stock Cheap or Expensive at Its Current Valuation?

Andrew Brunton
Is JPMorgan Stock Cheap or Expensive at Its Current Valuation?

The PBV (price-to-book value) ratio is considered to be the best ratio to use if you want to value bank stocks. JPMorgan Chase (JPM) is currently trading at a PBV ratio of 1.65x, a considerable premium to the industry (XLF) average of ~1.48x. Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), and Morgan Stanley (MS) have PBV ratios of 1.26x, 1.46x, 0.98x, and 1.19x, respectively.