Is JPMorgan a Bargain After Recent Gains and Digital Banking Expansion?

Wondering if JPMorgan Chase is a bargain or already priced for perfection? You are not alone; investors are keeping a close eye on its value story. The stock has gained 2.4% in the last week, 5.3% over the last month, and has climbed an impressive 32% year-to-date. This performance underscores renewed optimism and possibly some shifting risk views. Recent news has focused on JPMorgan Chase's strategic moves in digital banking and high-profile dealmaking, both of which have contributed to its strengthening momentum. Industry chatter has also centered on the bank’s resilience during market volatility and the potential impact of changing interest rate policies. On our valuation scorecard, JPMorgan Chase earns just 1 out of 6 for being undervalued. Next, we will break down what drives this score using several common approaches. Be sure to read on for a deeper perspective on what this valuation means by the end of the article.

JPMorgan Chase scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: JPMorgan Chase Excess Returns Analysis

The Excess Returns valuation model assesses a company’s ability to generate profits above the required return for its equity holders, focusing on return on invested capital and projecting future growth. For JPMorgan Chase, this approach captures how efficiently the bank turns shareholder investments into long-term value, beyond just earnings growth.

According to the most recent data, JPMorgan Chase has a Book Value of $124.96 per share and a Stable Earnings Per Share (EPS) of $22.49. These projections are supported by the average future Return on Equity estimates from 13 analysts. The bank’s average Return on Equity reaches 16.63%, highlighting robust profitability in its core operations.

The Cost of Equity is $11.11 per share, with an Excess Return of $11.38 per share. This shows that JPMorgan Chase has consistently earned more than its required cost of capital. Furthermore, a Stable Book Value of $135.23 per share underlines healthy balance sheet growth, again based on weighted forecasts from industry analysts.

Overall, the Excess Returns methodology estimates an intrinsic value that is roughly 13.2% higher than the current share price. This suggests that JPMorgan Chase is undervalued by a modest margin, giving investors potential upside if the company maintains its profitable trajectory.

Result: UNDERVALUED

Our Excess Returns analysis suggests JPMorgan Chase is undervalued by 13.2%. Track this in your watchlist or portfolio, or discover 864 more undervalued stocks based on cash flows.

Story Continues

JPM Discounted Cash Flow as at Nov 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for JPMorgan Chase.

Approach 2: JPMorgan Chase Price vs Earnings

The Price-to-Earnings (PE) ratio is a useful benchmark for valuing profitable companies like JPMorgan Chase. This metric allows investors to compare how much they are paying for each dollar of earnings, which is especially relevant for firms with a steady track record of profits.

The "normal" or fair PE ratio for any company is shaped by its expected earnings growth and the risks it faces. Higher growth prospects and lower perceived risks generally justify a higher PE ratio, while slower growth or elevated uncertainties lead to lower fair values.

JPMorgan Chase currently trades at a PE ratio of 15.23x. This is above the average of other banks in its peer group at 12.93x and notably higher than the broader industry average of 11.10x. At first glance, this premium implies that the market sees JPMorgan Chase as more attractive, likely due to its scale and consistent profitability.

However, Simply Wall St’s proprietary Fair Ratio for JPMorgan Chase is 13.95x. Unlike peer or industry averages, which may not fully reflect the company’s growth outlook, profit margins, or market risks, the Fair Ratio accounts for these critical details, including JPMorgan Chase’s earnings momentum, risk factors, and position as a leading bank.

Because JPMorgan Chase trades at a PE ratio just above its Fair Ratio, the stock is priced about right relative to its current outlook and fundamentals.

Result: ABOUT RIGHTNYSE:JPM PE Ratio as at Nov 2025

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1402 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your JPMorgan Chase Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is a simple, user-friendly tool that lets you define the story behind a company such as JPMorgan Chase by blending what you believe about its future with real financial forecasts. Instead of stopping at ratios and formulas, Narratives connect your view of the company's strategy, market opportunities, and risks to numbers like future revenue, earnings, and margins. This ultimately links the story to a fair value estimate.

On Simply Wall St's Community page, millions of investors use Narratives to make buying or selling decisions by instantly comparing their personal Fair Value to the latest market price. The best part is that Narratives update in real time whenever key news or events (like earnings or sector changes) emerge, so your investment thesis always reflects the freshest information.

For example, one investor might cite JPMorgan’s expanding digital banking and payments leadership to project a bullish Fair Value as high as $350. Another could focus on rising costs and shrinking margins, arriving at a far more cautious Fair Value near $235. With Narratives, you can see both perspectives, refine your own, and decide with confidence.

For JPMorgan Chase, however, we'll make it really easy for you with previews of two leading JPMorgan Chase Narratives:

🐂 JPMorgan Chase Bull Case

Fair Value: $327.70

JPMorgan Chase is trading at a 3.3% discount to this fair value.

Revenue Growth Rate: 6.11%

Strong, broad-based growth in wealth management, payments, and digital banking is fueling higher fee revenue and improved customer margins. Investments in financial technology and diverse business expansion are expected to position JPMorgan for resilience and competitive gains, supporting stable or rising earnings. Key risks include intensifying fintech competition, regulatory pressures, and potential demographic or product commoditization challenges to growth and margins.

🐻 JPMorgan Chase Bear Case

Fair Value: $247.02

JPMorgan Chase is trading at a 28.3% premium to this fair value.

Revenue Growth Rate: 4.08%

Rising credit loss allowances and higher expenses are pressuring margins and could strain future earnings if revenue growth does not keep pace. Anticipated rate cuts and a more cautious investment banking outlook suggest possible reductions in net interest income and advisory revenue, impacting overall profitability. Despite investment in tech and strong asset management, analysts with a bearish outlook believe the current share price is too high given the risks and expected margin compression.

Do you think there's more to the story for JPMorgan Chase? Head over to our Community to see what others are saying!NYSE:JPM Community Fair Values as at Nov 2025

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include JPM.

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