JPMorgan Chase Return On Equity vs. Beta
| JPM Stock | USD 181.25 1.17 0.65% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.15112938 | Current Value 0.08 | Quarterly Volatility 0.06715111 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.72 | 0.3976 |
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For JPMorgan Chase profitability analysis, we use financial ratios and fundamental drivers that measure the ability of JPMorgan Chase to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well JPMorgan Chase Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between JPMorgan Chase's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of JPMorgan Chase Co over time as well as its relative position and ranking within its peers.
JPMorgan |
Is JPMorgan Chase's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of JPMorgan Chase. If investors know JPMorgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about JPMorgan Chase listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.083 | Dividend Share 4.25 | Earnings Share 16.56 | Revenue Per Share 51.302 | Quarterly Revenue Growth 0.11 |
The market value of JPMorgan Chase is measured differently than its book value, which is the value of JPMorgan that is recorded on the company's balance sheet. Investors also form their own opinion of JPMorgan Chase's value that differs from its market value or its book value, called intrinsic value, which is JPMorgan Chase'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 JPMorgan Chase's market value can be influenced by many factors that don't directly affect JPMorgan Chase's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between JPMorgan Chase's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Chase is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Chase'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.
JPMorgan Chase Beta vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining JPMorgan Chase's current stock value. Our valuation model uses many indicators to compare JPMorgan Chase value to that of its competitors to determine the firm's financial worth. JPMorgan Chase Co is rated second overall in return on equity category among related companies. It is rated fifth overall in beta category among related companies totaling about 7.10 of Beta per Return On Equity. At this time, JPMorgan Chase's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value JPMorgan Chase by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JPMorgan Chase's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the JPMorgan Chase's earnings, one of the primary drivers of an investment's value.JPMorgan Beta vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
JPMorgan Chase |
| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
JPMorgan Chase |
| = | 1.12 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
JPMorgan Beta Comparison
JPMorgan Chase is currently under evaluation in beta category among related companies.
Beta Analysis
JPMorgan Chase returns are very sensitive to returns on the market. As the market goes up or down, JPMorgan Chase is expected to follow.
JPMorgan Chase Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in JPMorgan Chase, profitability is also one of the essential criteria for including it into their portfolios because, without profit, JPMorgan Chase will eventually generate negative long term returns. The profitability progress is the general direction of JPMorgan Chase's change in net profit over the period of time. It can combine multiple indicators of JPMorgan Chase, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -10.4 B | -9.9 B | |
| Operating Income | 61.6 B | 64.7 B | |
| Net Income | 49.6 B | 52 B | |
| Income Tax Expense | 12.1 B | 12.7 B | |
| Income Before Tax | 61.6 B | 64.7 B | |
| Total Other Income Expense Net | 61.6 B | 64.7 B | |
| Net Income Applicable To Common Shares | 41.3 B | 43.3 B | |
| Net Income From Continuing Ops | 49.6 B | 32.8 B | |
| Net Interest Income | 89.3 B | 62.9 B | |
| Interest Income | 170.6 B | 87.8 B | |
| Change To Netincome | 26.7 B | 28.1 B | |
| Net Income Per Share | 16.86 | 17.71 | |
| Income Quality | 0.26 | 0.27 | |
| Net Income Per E B T | 0.80 | 0.60 |
JPMorgan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on JPMorgan Chase. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of JPMorgan Chase position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the JPMorgan Chase's important profitability drivers and their relationship over time.
Use JPMorgan Chase in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if JPMorgan Chase position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JPMorgan Chase will appreciate offsetting losses from the drop in the long position's value.JPMorgan Chase Pair Trading
JPMorgan Chase Co Pair Trading Analysis
The ability to find closely correlated positions to JPMorgan Chase could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace JPMorgan Chase when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back JPMorgan Chase - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling JPMorgan Chase Co to buy it.
The correlation of JPMorgan Chase is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as JPMorgan Chase moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if JPMorgan Chase moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for JPMorgan Chase can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your JPMorgan Chase position
In addition to having JPMorgan Chase in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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Complementary Tools for JPMorgan Stock analysis
When running JPMorgan Chase's price analysis, check to measure JPMorgan Chase's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy JPMorgan Chase is operating at the current time. Most of JPMorgan Chase's value examination focuses on studying past and present price action to predict the probability of JPMorgan Chase's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move JPMorgan Chase's price. Additionally, you may evaluate how the addition of JPMorgan Chase to your portfolios can decrease your overall portfolio volatility.
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To fully project JPMorgan Chase's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of JPMorgan Chase at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include JPMorgan Chase's income statement, its balance sheet, and the statement of cash flows.