JPMorgan Chase: The Price I’ll Start Buying


  • Purchasing good banks like JPMorgan near tangible book value has always been profitable for me.
  • However, they’re seldom available at such bargain prices.
  • Therefore, the more practical question is: How much of a premium would I be willing to pay?
  • I’m happy to pay a premium of up to 10 times its dividends, which translates to a target share price of about $115 for JPMorgan under current conditions.

JPMorgan Europe Ltd headquarters, London


Investment thesis

JPMorgan Chase (NYSE:JPM) ended 2022 on a positive note. Fourth quarter profits of $3.57 per share were about 7% higher than the prior-year tally of $3.33. However, banks are certainly facing some uncertainties going forward with the future of interest rates and

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Source: JPM Q4 ER

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Source: author based on data from Yahoo Finance

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Author based on Seeking Alpha data

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Source: author based on Seeking Alpha data.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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