JP Morgan Z Score Analysis
JP Morgan's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 First Factor  =  1.2 * (  Working Capital  /  Total Assets ) 

 Second Factor  =  1.4 * (  Retained Earnings  /  Total Assets ) 

 Thrid Factor  =  3.3 * (  EBITAD  /  Total Assets ) 

 Fouth Factor  =  0.6 * (  Market Value of Equity  /  Total Liabilities ) 

 Fifth Factor  =  0.99 * (  Revenue  /  Total Assets ) 

JP Morgan Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for JP Morgan is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical
fundamentals such as Z Score. Since JP Morgan's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of JP Morgan's historical
financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of JP Morgan's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
According to the company's disclosures, JP Morgan Chase has a Z Score of 0.0. This is 100.0% lower than that of the Financial Services sector and about the same as
Banksâ€”Diversified (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.
JP Morgan Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses JP Morgan's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of JP Morgan could also be used in its relative valuation, which is a method of valuing JP Morgan by comparing valuation metrics of similar companies.
JP Morgan is currently under evaluation in z score category among related companies.
JP Morgan Current Valuation Drivers
We derive many important indicators used in calculating different scores of JP Morgan from analyzing JP Morgan's
financial statements. These drivers represent accounts that assess JP Morgan's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of JP Morgan's important
valuation drivers and their relationship over time.
  2016  2017  2018  2019  2020  2021 (projected) 
Net Income Per Employee   101.36 K  96.78 K  126.8 K  141.76 K  113.77 K  101.19 K 
Revenue Per Employee   432.28 K  451.01 K  513.12 K  554.21 K  505.77 K  461.23 K 
Average Assets   2,475.48 B  2,551.53 B  2,609.39 B  2,729.15 B  3,245.84 B  3,165.51 B 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA   38.12 B  40.2 B  46.79 B  51.12 B  42.3 B  43.74 B 
Earnings Before Interest Taxes and Depreciation Amortization USD   38.12 B  40.2 B  46.79 B  51.12 B  42.3 B  43.74 B 
Earnings before Tax   32.64 B  34.03 B  39 B  42.76 B  33.69 B  35.7 B 
Average Equity   252.78 B  257.11 B  257.28 B  262.18 B  269.05 B  274.6 B 
Enterprise Value   405.82 B  425.19 B  421.9 B  773.76 B  457.42 B  450.4 B 
Free Cash Flow   21.88 B  (10.83 B)  15.61 B  4.09 B  (79.91 B)  (82.01 B) 
Invested Capital   2,542.45 B  2,542.7 B  2,823.02 B  2,886.5 B  3,345.82 B  3,320.58 B 
Invested Capital Average   2,537.48 B  2,559.81 B  2,695.02 B  2,964.1 B  3,295.82 B  3,297.01 B 
Market Capitalization   308.77 B  371.05 B  324.63 B  437.23 B  387.34 B  360.97 B 
Tangible Asset Value   2,436.73 B  2,479.21 B  2,568.18 B  2,634.04 B  3,331.33 B  3,186.49 B 
JP Morgan Fundamentals
About JP Morgan Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze JP Morgan Chase's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of JP Morgan using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of JP Morgan Chase based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
JPMorgan Chase Co. operates as a financial services company worldwide. JPMorgan Chase Co. was founded in 1799 and is headquartered in New York, New York. JP Morgan operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 259350 people.
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Please see
JP Morgan Piotroski F Score and
JP Morgan Valuation analysis. Note that the JP Morgan Chase information on this page should be used as a complementary analysis to other JP Morgan's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try
My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on selflearning algorithm to remember stocks you like.
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The market value of JP Morgan Chase is measured differently than its book value, which is the value of JP Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of JP Morgan's value that differs from its market value or its book value, called intrinsic value, which is JP Morgan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because JP Morgan's market value can be influenced by many factors that don't directly affect JP Morgan Chase underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between JP Morgan's value and its price as these two are different measures arrived at by different means. Investors typically determine JP Morgan value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JP Morgan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.