Final Paper - ome J.P. Morgan Chase Analysis 1 on Equity...

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ome on Equity (ttm) m) year expected) ) s market leader J.P. Morgan Chase Analysis 1 Securities analysis for J.P. Morgan Chase (JPM) Keller Graduate School of Management – FI560 Ryan D. Lee
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J.P. Morgan Chase Analysis 2 Abstract In light of all the recent financial difficulties in the economy, especially in the banking industry, I am analyzing J.P. Morgan Chase Bank. In this analysis I attempted to take a macro view of the investment climate in which J.P Morgan Chase operates to understand both its current value as well as a longer term investment strategy as it relates to the company. I looked at the competitive landscape as well as the overall economic environment to draw conclusions related to J.P. Morgan Chase. I estimated the intrinsic value of the company’s stock using both the CAPM model as well as Graham’s Formula. As outlined in my analysis, I recommend a buy and hold strategy for Chase.
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J.P. Morgan Chase Analysis 3 J.P. Morgan Chase Background The global banking industry is a very diverse and fiercely competitive business environment. Many financial institutions have suffered greatly in the recent economic crisis and many banks and financial institutions have gone under. In stark contrast Chase Bank has emerged in recent years, and solidified its position, as the top global corporate ran banks. With a market cap of approximately $179.5 billion, Global Finance Magazine recently ranked J.P. Morgan Chase bank as the #1 corporate bank, (Keeler, 2009). With a corporate legacy that dates back to 1823, what is today known as J.P. Morgan Chase Bank (JPM), is one of the top four bank holding companies in the United States, based on assets. Led by David Rockefeller during the 1970s and 1980s, Chase Manhattan emerged as one of the largest and most prestigious banking operations of its time. Through a series of acquisitions and mergers today the financial powerhouse is known as J.P. Morgan Chase Bank with leadership positions in syndicated lending, treasury and securities services, credit cards, mortgages, and retail financial services. With its global Headquarters in New York City, J.P. Morgan is a conglomerate of retail financial services and commercial banking with over $2.1 trillion in assets and $176.1 billion in stockholders’ equity as of December 31, 2010, (Research, 2011). J.P. Morgan employees more
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This note was uploaded on 04/21/2011 for the course STATS GM533 taught by Professor Adams during the Spring '11 term at Keller Graduate School of Management.

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Final Paper - ome J.P. Morgan Chase Analysis 1 on Equity...

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