JPMorgan Chase

Methodology

For JPMorgan Chase, this calculation must account for the cyclical nature of banking earnings, which expand during credit booms and contract during downturns. Using normalized earnings across a full economic cycle provides more reliable results than peak or trough figures. The bank's diversified revenue streams across consumer banking, investment banking, and asset management help stabilize earnings compared to more specialized financial institutions.

Methodology

JPMorgan typically shows moderate PEG ratios reflecting the market's recognition of its best-in-class management and diversified business model among mega-cap banks. Growth rates in financials can be misleading due to cyclical EPS swings, so focus on sustainable return on equity and book value growth instead. Attractive valuations relative to the bank's historical range often signal good entry points.

Methodology

JPMorgan's consistent dividend and aggressive share buyback program make PEGY particularly valuable for assessing total shareholder returns. The bank typically returns a substantial portion of earnings through dividends and buybacks, significantly enhancing the total return picture. PEGY compared to regional bank peers highlights JPMorgan's superior capital generation and management's commitment to shareholder-friendly capital allocation.