JPMorgan: This Banking Giant Has A Very Decent Upside Potential (NYSE:JPM)


Michael M. Santiago

Thesis

In my previous article (released in Q3 2023, which were released on October 13) that covered JPMorgan Chase & Co. (NYSE:JPM), I assigned a strong buy rating citing that its estimated fair price

Table Of Assumptions
(Current data)
Equity Value 566,340.00
Debt Value 731,372.00
Cost of Debt 2.16%
Tax Rate 24.34%
10y Treasury 4.222%
Beta 1.10
Market Return 10.50%
Cost of Equity 11.13%
Net Income 49,552.00
Interest 15,803.00
Tax 12,060.00
D&A 7,512.00
EBITDA 84,927.00
D&A Margin 5.14%
Interest Expense Margin 10.82%
Revenue 146,009.0

CAPM
Risk-Free Rate 4.222%
Beta 1.1
Market Risk Premium 6.228%
Required Rate of Return 11.073%

Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset & Wealth Management Corporate Total
2023 70,148.0 48,807.0 15,546.0 19,827.0 8,033.0 162,361.0
2024 72,013.0 49,490.3 15,959.4 20,848.1 2,277.0 160,587.8
2025 73,878.0 50,183.2 16,372.8 21,921.8 2,277.0 164,632.7
2026 75,743.0 50,885.7 16,786.1 23,050.7 2,277.0 168,742.6
2027 72,101.5 47,186.3 15,979.1 21,374.9 2,277.0 158,918.9
2028 73,139.7 47,846.9 16,209.2 22,475.8 2,277.0 161,948.7
2029 74,193.0 48,516.8 16,442.7 23,633.3 2,277.0 165,062.7
Growth Rate % 1.44% 1.40% 1.44% 5.15%

Average Net Income Margin Estimates My Net income Margin Estimates %
2024 28.25% 29.29%
2025 28.35% 33.94%
2026 29.81% 31.47%
2027 26.32% 36.12%
2028 25.29% 31.47%
2029 24.30% 33.94%

[colabot6]

Leave a Comment

Your email address will not be published. Required fields are marked *