WFC - JPMorgan: Fairly Valued Despite Positive Fundamentals
2024-02-23 11:13:08 ET
Summary
- JPMorgan's ten-year median net interest margin is steady at 1.9%, reflecting the bank's diversification and consistent loan quality.
- JPMorgan's net charge-off ratio shows relative consistency, indicating stable credit loss management in line with the other big four banks.
- JPMorgan's efficiency ratio has mostly hovered around 60%, close to industry averages.
- JPMorgan has maintained a healthy loan-to-deposit ratio under 100% over the past decade, indicating stable and cost-effective funding sources.
- Expected CAGR of 7.1% for JPMorgan over five years, with projections based on normalized financial ratios and current valuation metrics, leading to a 'hold' recommendation.