JPMorgan Chase's stock performance has outpaced the S&P 500 over the past decade. The document analyzes JPMorgan's financial metrics like earnings per share, price-to-earnings ratio, dividend yield, and analysts' earnings estimates to understand the company's performance and provide context for investors. It also discusses how factors like buybacks impact the stock. Overall, the analysis suggests JPMorgan Chase's earnings are expected to continue growing, positioning the stock well for continued strong returns.

1. JPMorgan Chase
An Owner's Manual for Investors

2. you're entitled to a share of its earnings.
As an owner of JPMorgan Chase's stock

3. NOT TO SCALE
obviously
$24
Billion
JPMorgan's
12-Month
Earnings
JPMorgan's
Earnings
per share
$5.87

4. If you divide JPMorgan's share price
by its earnings per share (EPS), you
get its price-to-earnings ratio.

5. P/E
Ratio
=
Share Price
EPS
11.39=
$66.80
$5.87
=
This is how much it costs to buy $1
of JPMorgan's annual earnings.

6. A higher P/E ratio implies a lower
potential return.

7. 1
10
100
1,000
100 Biggest S&P Companies
P/ERatio
Most companies have P/E ratios
between 12 and 30
What is a Typical Stock's P/E Ratio?

8. You can also use JPMorgan Chase's
P/E ratio to derive its earnings yield.

9. 1
11.39 8.8%
JPMorgan's
Earnings
Yield
1
P/E Ratio
= ==

10. This helps you compare a stock
to other types of investments,
such as bonds and real estate.

11. 8.78%
6.63%
4.33%
2.90%
2.45%2.21%
JPMorgan's
Earnings
Yield
Class A
Office
Building
Cap Rate
S&P 500
Earnings
Yield
10-Year
AAA Corp.
Bonds
5-Year
CDs
10-Year
Treasuries
Average Rates of Return

12. Of course, if you own one share of
JPMorgan Chase stock, you don't
get a check each year for its EPS.

13. You receive quarterly dividends
instead, which typically account
for only a portion of total earnings.

14. 32%
JPMorgan's Payout Ratio
The payout ratio is the percent of earnings
paid as dividends. Anywhere from 30% to
70% is normal.

15. 2.63%JPMorgan Chase's Dividend Yield

16. JPMorgan's
Dividend
Yield
=
Dividend
per Share
Share
Price
=
$1.76
$66.80
= 2.63%

17. You can then use this to compare
stocks based on their income-
generating potential.

18. 2.63%
3.57%
3.33%
2.72%
1.64%
0.71%
JPMorgan Exxon Walmart Wells
Fargo
Comcast Visa
Representative Dividend Yields

19. JPMorgan also buys back its own stock.

20. This reduces its share count, which
increases the ownership interest
of each remaining share.

21. $6
Billion
-1.6%
JPMorgan's
Buybacks
(TTM)
Change in
JPMorgan's
Share Count
(TTM)

22. JPMorgan Chase's stock?
So, what does the future hold for

23. JPMorgan
129%
S&P 500
119%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
Today20132011200920072005
If the Past is Prologue...
Total return since Jan. 1, 2005

24. JPMorgan Chase's earnings to grow.
While it's impossible to predict the
future with precision, analysts expect

25. $5.91
$6.20
Current Fiscal Year Next Fiscal Year
Average Earnings per Share Estimate Among Wall
Street Analysts
Divining JPMorgan Chase's Future

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