Value Investing JP Morgan: Analysis

September 01, 2020

Value Investing JP Morgan: Analysis

JP Morgan: Analysis
Snowflake S-1 & IPO - Teardown
Pershing Square Capital Q2 2020 Letter
Culper research - "Our Response to the C-Suite Memo"

Posted: 31 Aug 2020 01:35 PM PDT

I recently did a valuation analysis on JPM using a DDM. The valuation is contingent on certain macroeconomic factors with assumptions such as;

The Fed will keep interest rates at zero for the next 5 years
Congress will almost certainly continue passing stimulus bills going forward as there are still cash flow problems due to COVID-19
JPM will not cut its dividend under almost any circumstance as they have one of the highest CET1 capital reserves of $191 billion, acting as a buffer protecting the dividend.
JPM will return to a normalized ROE and payout ratio when the economy has recovered, but faces slow growth in the future due to very low interest rates and high household & corporate debt levels.

Given the following assumptions, I created 3 scenarios involving a base case, a fast recovery, and a slow recovery. The valuation determines that JPM is worth $133.63

Please have a look if interested. This is one of my first valuations and would be willing to take some feedback.

nextgenfinanceca.wordpress.com/2020/08/31/jp-morgan-the-fortress-balance-sheet/

submitted by /u/ghost_tendies
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Snowflake S-1 & IPO - Teardown

Posted: 01 Sep 2020 03:18 AM PDT

submitted by /u/Erdos_0
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Pershing Square Capital Q2 2020 Letter

Posted: 31 Aug 2020 05:19 AM PDT

submitted by /u/Erdos_0
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Culper research - "Our Response to the C-Suite Memo"

Posted: 31 Aug 2020 12:01 PM PDT

submitted by /u/omar_torritos
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