This presentation summarizes JPMorgan Chase & Co.'s business operations, financial performance, competitive position, and valuation. Key points include:
- JPMorgan is the largest US bank by market cap and has a large physical branch and ATM network across the US and globally.
- It has various business segments including investment banking, asset management, and retail banking.
- JPMorgan was profitable during the financial crisis while its competitors reported large losses. It has a strong capital position.
- Analysts value JPMorgan at $54.74/share based on dividend discount and relative P/E valuation models, representing a buy rating.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital | Valuation Insight | Corporate Finance in 30 Minutes Mercer Capital
Corporate finance does not need to be a mystery.
In this whitepaper, we have distilled the fundamental principles of corporate finance into an accessible and non-technical primer. Structured around the three key decisions of capital structure, capital budgeting, and dividend policy, the guide is designed to assist directors and shareholders without a finance background to make relevant and meaningful contributions to the most consequential financial decisions all companies must make. Our goal with this whitepaper is to give directors and shareholders a vocabulary and conceptual framework for thinking about strategic corporate finance decisions, allowing them to bring their perspectives and expertise to the discussion.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital | Valuation Insight | Corporate Finance in 30 Minutes Mercer Capital
Corporate finance does not need to be a mystery.
In this whitepaper, we have distilled the fundamental principles of corporate finance into an accessible and non-technical primer. Structured around the three key decisions of capital structure, capital budgeting, and dividend policy, the guide is designed to assist directors and shareholders without a finance background to make relevant and meaningful contributions to the most consequential financial decisions all companies must make. Our goal with this whitepaper is to give directors and shareholders a vocabulary and conceptual framework for thinking about strategic corporate finance decisions, allowing them to bring their perspectives and expertise to the discussion.
Mercer Capital | A Layperson's Guide to the Option Pricing ModelMercer Capital
Mercer Capital's whitepaper on the option pricing model, often used to value ownership interests in early-stage companies. Developed in response to the need to reliably estimate the value of different economic rights in complex capital structures, the OPM models the various capital structure components as a series of call options on underlying total equity value. Through a detailed example, Travis W. Harms explains key concepts including breakpoints and tranches in a straightforward and non-technical way, taking the mystery out of OPM terms such as “breakpoint” and “tranche”. Relative to the probability-weighted expected return method, the principal strengths of the OPM include the small number of required assumptions and auditability. The PWERM, in contrast, offers greater flexibility and transparency. Harms closes with some thought on reconciling OPM results with the market participant perspective.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Mercer Capital's Investment Management Industry Newsletter | Q1 2020 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Investment Management Industry Newsletter | Q3 2020 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Financial Reporting Update | Goodwill Impairment Mercer Capital
Mercer Capital’s latest financial reporting update focuses on the topic of goodwill impairment. In this whitepaper, we feature five articles:
Financial Reporting Fallacy: The Whole May Appear Healthier Than the Parts
Industry Considerations for Step Zero: Qualitative Assessments
Accounting Standards Update 2016-01: Impairment Considerations for Equity Investments
What is the Order of Testing for Impairment?
Tax Reform and Impairment Testing
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Mark...Mercer Capital
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Marks and Trends Newsletter provides a brief digest and commentary of some of the most relevant market trends influencing the fair value regarding private equity portfolio investments.
Mercer Capital | Getting It Right: Loan Valuation and Credit Marks in Today's...Mercer Capital
Although investors and perhaps bankers are not as focused on credit as was the case several years ago, properly assessing credit risk and determining appropriate credit marks remains the key arbiter in determining whether a deal is destined to struggle or meet/exceed expectations. This session looked at the evolution of loan portfolio valuations as part of due diligence and M&A pricing since the financial crisis. Davis and Gibbs provided insight into some of the nuances around the evaluation process and what to look for in terms of potential potholes regarding potential acquisitions.
Presented by Andrew K. Gibbs, CFA, CPA/ABV, and Jeff K. Davis, CFA of Mercer Capital at Bank Director's 2015 Acquire or Be Acquired Conference on January 26, 2015
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Investment Management Industry Newsletter | Q2 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
This document draws together our views, observations and analysis of the global trends in the insurance M&A market, including influencing factors and macroeconomic variables.
Our analysis covers five primary regions: Western Europe, North America, Asia, Latin America and the Middle East and North Africa. Each section includes a review and remark on deal activity and current trends, in addition to consideration
of future bearings.
Mercer Capital's Portfolio Valuation: Private Equity and Credit | Q1 2020Mercer Capital
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Marks and Trends Newsletter provides a brief digest and commentary of some of the most relevant market trends influencing the fair value regarding private equity portfolio investments.
Deposit mastery summit deck 2-6-2020 - jkdJeff Davis
This is a presentation I gave to a motivated group of bankers who are members of the Emmerich Group's high performance banks. The presentation focuses on low cost deposits as the base if not rocket fuel for growth in franchise value of a bank.
TandemModels® is delivered to investment managers and advisors in a single platform environment (SaaS) for asset allocation model design and management, trading, cash flow management, portfolio re-balancing, performance reporting, and custodial integration and reconciliation.
Mercer Capital | A Layperson's Guide to the Option Pricing ModelMercer Capital
Mercer Capital's whitepaper on the option pricing model, often used to value ownership interests in early-stage companies. Developed in response to the need to reliably estimate the value of different economic rights in complex capital structures, the OPM models the various capital structure components as a series of call options on underlying total equity value. Through a detailed example, Travis W. Harms explains key concepts including breakpoints and tranches in a straightforward and non-technical way, taking the mystery out of OPM terms such as “breakpoint” and “tranche”. Relative to the probability-weighted expected return method, the principal strengths of the OPM include the small number of required assumptions and auditability. The PWERM, in contrast, offers greater flexibility and transparency. Harms closes with some thought on reconciling OPM results with the market participant perspective.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Mercer Capital's Investment Management Industry Newsletter | Q1 2020 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Investment Management Industry Newsletter | Q3 2020 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Financial Reporting Update | Goodwill Impairment Mercer Capital
Mercer Capital’s latest financial reporting update focuses on the topic of goodwill impairment. In this whitepaper, we feature five articles:
Financial Reporting Fallacy: The Whole May Appear Healthier Than the Parts
Industry Considerations for Step Zero: Qualitative Assessments
Accounting Standards Update 2016-01: Impairment Considerations for Equity Investments
What is the Order of Testing for Impairment?
Tax Reform and Impairment Testing
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Mark...Mercer Capital
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Marks and Trends Newsletter provides a brief digest and commentary of some of the most relevant market trends influencing the fair value regarding private equity portfolio investments.
Mercer Capital | Getting It Right: Loan Valuation and Credit Marks in Today's...Mercer Capital
Although investors and perhaps bankers are not as focused on credit as was the case several years ago, properly assessing credit risk and determining appropriate credit marks remains the key arbiter in determining whether a deal is destined to struggle or meet/exceed expectations. This session looked at the evolution of loan portfolio valuations as part of due diligence and M&A pricing since the financial crisis. Davis and Gibbs provided insight into some of the nuances around the evaluation process and what to look for in terms of potential potholes regarding potential acquisitions.
Presented by Andrew K. Gibbs, CFA, CPA/ABV, and Jeff K. Davis, CFA of Mercer Capital at Bank Director's 2015 Acquire or Be Acquired Conference on January 26, 2015
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Mercer Capital's Investment Management Industry Newsletter | Q4 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Mercer Capital's Investment Management Industry Newsletter | Q2 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
This document draws together our views, observations and analysis of the global trends in the insurance M&A market, including influencing factors and macroeconomic variables.
Our analysis covers five primary regions: Western Europe, North America, Asia, Latin America and the Middle East and North Africa. Each section includes a review and remark on deal activity and current trends, in addition to consideration
of future bearings.
Mercer Capital's Portfolio Valuation: Private Equity and Credit | Q1 2020Mercer Capital
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Marks and Trends Newsletter provides a brief digest and commentary of some of the most relevant market trends influencing the fair value regarding private equity portfolio investments.
Deposit mastery summit deck 2-6-2020 - jkdJeff Davis
This is a presentation I gave to a motivated group of bankers who are members of the Emmerich Group's high performance banks. The presentation focuses on low cost deposits as the base if not rocket fuel for growth in franchise value of a bank.
TandemModels® is delivered to investment managers and advisors in a single platform environment (SaaS) for asset allocation model design and management, trading, cash flow management, portfolio re-balancing, performance reporting, and custodial integration and reconciliation.
The Pepperdine Private Capital Markets Project, available at http://bschool.pepperdine.edu/privatecapital, is the first comprehensive and simultaneous investigation of the major private capital market segments. The initial research survey examined the behavior of the private capital market participants, investment types, expected and historical rates of return, financial ratio thresholds, coupon rate distributions and other investment characteristics.
Michael Durante Western Reserve 2009 review and 2010 outlook
JPM Equity Research Presentation
1. Equity Research Presentation Rutgers Business School Financial Management Professor John Longo Analysts: Daniel Esposito, Neal Patel, Justin Miko, Daniel Kostiw, Priyank Patel
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8. JPM has not diluted existing shareholders… Capital Raising by JPM and Competitors: Source: Bloomberg
9. JPM has not diluted existing shareholders… Common Stock: $15.00 Billion Preferred Stock: $33.80 Billion Capital Notes, Convertible Bonds, Subordinated Debt: $1.82 Billion Other Capital Raisings: $0.07 Billion TOTAL: $50.69 Billion COMMON STOCK AS % of MARKET CAP: 8.96% Common Stock: $42.80 Billion Preferred Stock: $61.74 Billion Capital Notes, Convertible Bonds, $ 4.00 Billion Subordinated Debt: Other Capital Raisings: $ 10.10 Billion TOTAL: $118.64 Billion COMMON STOCK AS % of MARKET CAP: 30.75% Common Stock: $70.40 Billion Preferred Stock: $18.69 Billion Capital Notes, Convertible Bonds, Subordinated Debt: $00.00 Billion Other Capital Raisings: $44.74 Billion TOTAL: $133.83 Billion COMMON STOCK AS % of MARKET CAP: 73.31% Common Stock: $19.60 Billion Preferred Stock: $26.55 Billion Capital Notes, Convertible Bonds, $ 4.25 Billion Subordinated Debt: Other Capital Raisings: $00.00 Billion TOTAL: $50.40 Billion COMMON STOCK AS % of MARKET CAP: 15.01%
10. Earnings and Comparison of Peers JPM EPS and P/E: JPM Peer Analysis: 2.24% 0.23% 7.40% 0.70 182.84 $139.19 $16.09 BAC Bank of America Corporation 7.95% 0.73% 13.09% 1.43 32.78 $130.57 $27.87 WFC Wells Fargo & Company -10.82% -0.73% -28.95% 0.68 - $96.03 $4.20 C Citigroup 5.03% 0.36% 14.55% 1.09 26.49 $167.32 $42.46 JPM J.P. Morgan Chase Return on Equity (ttm): Return on Assets (ttm): Profit Margin (ttm): Price/Book: P/E(ttm): Market Cap (Bil): Stock Price: Ticker: Company: 19.00E $3.30E $.92E $.81E $.75E $.68E 2010 E 25.00E $2.18E $0.68E $0.82 $0.28 $0.40 2009 23.01 $1.37 $0.07 $0.11 $0.54 $0.68 2008 9.97 $4.38 $0.86 $0.97 $1.20 $1.34 2007 Fiscal Year P/E: Fiscal Year: Q4: Q3: Q2: Q1: EPS and P/E:
11. Industry Position “ The largest bank by market capitalization, JPMorgan is the only large financial institution that posted a profit during the financial crisis. This month, it posted its 20th-consecutive quarterly profit” - USA TODAY, 07/26/2009 "JPMorgan was conservative going into the downturn, and that strong financial position is enabling it to weather the current downturn better, and even be aggressive where required," -Tom Kersting, financial services analyst at Edward Jones. “ Among the four largest banks that received $25 billion each from the U.S. Treasury last fall as part of the Troubled Asset Relief Program (TARP), JPMorgan is the only one that has repaid the government. Citigroup and Bank of America went back to the trough, taking an additional $20 billion each, while Wells Fargo still hasn't been cleared to repay.” – USA TODAY, 07/26/2009 "You know, keep in mind, though there are a lot of banks that are actually pretty well managed, JPMorgan being a good example, Jamie Dimon, the CEO there, I don't think should be punished for doing a pretty good job managing an enormous portfolio," -President Barack Obama
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13. Financial Statement Analysis (Continued) “ a precautionary step…While we recognize our tremendous obligation to shareholders to maintain dividend levels, we also understand that extraordinary times require extraordinary measures…Our action today is being done as a strong precautionary measure to help ensure that our fortress balance sheet remains intact -- even if conditions worsen significantly.“ Jamie Dimon, CEO, 02/23/2009 “ when we are confident that the economy doesn’t have another potential leg down….we would likely make a single significant move initially upping the dividend… to something in the range of $0.75 to $1.00 per year from the $0.20 level we’re currently at…we feel comfortable with our 30% to 40% payout rate of normalized type of earnings…first significant move could come sometime in the early part of 2010 but that requires the economy to stabilize…” Michael J. Cavanagh, CFO, 10/14/2009 Dividend Cut:
14. Valuation (Dividend Discount Model) Dividend Discount Model: 2010 Dividend: -$1.50 -Can payout according to historical figures -Increased earnings power in 2010 -Management to restore dividend Discount Rate for JPM: -9.837% -Fama-French 3 Factor Model Growth Rate: -6.63% -10 year historical ROE @ 10.20% -Payout Ratio @ 35%/ Plowback @65% Valuation: -1 Year JPM Target Price: $46.77 Expected Return: -1 Year JPM Return: 10.15% Source: JPM Investor Relations
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16. Valuation Summary Equal Weighted P/E Model and Dividend Discount Model: -Expected 1 Yr Target Price of $54.74 -Expected 1 Yr Return of 28.92% -Implies a Market Capitalization of $216 Billion
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20. Disclosures: Ownership and material conflicts of interest: The analysts of this report or their respective households do not own any shares, debt, or other financial instruments related to JPM. Furthermore, to the very best of our knowledge, we do not know of any other potential conflicts of interest that might bias this report. Compensation, Market Making, and Investment Banking: The analysts in this report are not compensated based on investment banking revenue. Furthermore, the analysts’ firm currently and has not been a market maker in J.P. Morgan & Co.’s securities. Additionally, the analysts’ firm has not, and does not have an investment banking relationship with J.P. Morgan Chase & Co. in any capacity. Disclaimer: The information set forth herein has been obtained or derived from sources generally available to the public and believed by the analysts to be reliable, but the analysts do not make any representation or warranty, express or implied, as to its accuracy or completeness. The information is not intended to be used as the basis of any investment decisions by any person or entity. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. This report should not be considered to be a recommendation by any individual affiliated with Rutgers University or Rutgers Business School. Ratings do not imply that the investor should allocate the security in a certain manner in their portfolio. Given when a security is expected to deliver negative returns over the twelve month period following the publication of the report. SELL Given when a security is believed to deliver flat returns over the twelve month period following the publication of the report. HOLD Given when a security is expected to deliver absolute returns of 15% or greater over the twelve month period following the publication of the report. BUY Significance of Rating: Rating: