JPMorgan Chase (JPM) Stock May Be 32% Undervalued Following Blockchain Expansion

JPMorgan Chase has put in a powerful three year run, which naturally raises the question of whether that share price now lines up with the returns the bank earns on its capital. With fresh moves into blockchain based services and high profile investment banking mandates, investors are asking if the current valuation makes sense given the profitability of the franchise.

• Over the past 3 years, JPMorgan Chase has delivered a share price return of about 149.3%, which puts a lot of weight on whether the bank's underlying returns on capital can support that kind of market enthusiasm.
• Recent blockchain expansions, including tokenized money market funds on Solana and the wider rollout of JPM Coin across public networks, can influence how steadily the bank converts its balance sheet and fee pool into cash flows, as well as how much capital it needs to keep reinvesting to stay competitive.
• If you'd rather focus on earnings, this one's for you. See why JPMorgan Chase's 13.9x P/E tells a different valuation story.

The issue now is whether the level of returns JPMorgan Chase earns on its capital is strong and durable enough to justify where the stock trades today.

You are already considering whether JPMorgan Chase's 149.3% three-year run is supported by the returns it earns on its capital, so it can be helpful to compare that question against a wider set of 29 resilient stocks with low risk scores

Is JPMorgan Chase a Bargain on Excess Returns?

The Excess Returns model looks at how effectively JPMorgan Chase turns its equity base into profits above its cost of capital. On this framework, the bank carries a Book Value of $132.30 per share and a Stable Book Value estimate of $148.39 per share, with Stable EPS of $27.23 per share based on analyst return on equity forecasts. An Average Return on Equity of 18.35% against a Cost of Equity of $12.01 per share leaves an Excess Return of $15.22 per share, which indicates that the franchise is modeled to generate earnings above the return investors typically demand for holding the stock.

The companion dividend model points to current annual dividends of $6.83 per share, a payout ratio of 26.83%, and a capped long run dividend growth input of 3.7%. This suggests room in the estimates for retained earnings to compound book value over time. J.P. Morgan's recent push into tokenized money market funds on Solana and expanded JPM Coin usage helps explain why the Excess Returns approach still places the estimated intrinsic value substantially above the current share price of $337.04. Find out what JPMorgan Chase could be worth using our Excess Returns estimate.

The JPMorgan Chase Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the valuation puzzle for JPMorgan Chase leaves off by spelling out which future paths for growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than today’s price. Each narrative ties its valuation view to a clear stance on how JPMorgan Chase's scale, profitability mix and key risks might evolve, giving you a reference point you can revisit as fresh information comes through on the Community page.

Community views on JPMorgan Chase are split between those who see more upside left and those who think most of the strength is already reflected.

Bull case: 10% undervalued

"Ongoing investment and active participation in tokenization, stablecoins and payment related technology, including the deposit token work, positions JPMorgan Chase to benefit from the next wave of technology adoption…"

Discover why this Narrative puts JPMorgan Chase at 10% undervalued.

Bear case: roughly fairly valued

"JPMorgan Chase is preparing for meaningfully higher AI and token related expenses in the second half of 2026, if model choices or usage do not translate into clear efficiency gains or incremental fee and interest revenue…"

Explore why this Narrative puts JPMorgan Chase at roughly fairly valued.

One more question for JPMorgan Chase that valuation alone does not answer

Price, profits and capital efficiency sketch only part of the JPMorgan Chase story, because recent insider share activity flagged by our checks raises a separate set of clues that investors often study closely. See the recent insider selling flagged for JPMorgan Chase.

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