The Bank of New York Mellon Corporation

LSE:0HLQ Stock Report

Market Cap: US$55.6b

Bank of New York Mellon Valuation

Is 0HLQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HLQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HLQ ($76.83) is trading below our estimate of fair value ($98.28)

Significantly Below Fair Value: 0HLQ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HLQ?

Key metric: As 0HLQ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HLQ. This is calculated by dividing 0HLQ's market cap by their current earnings.
What is 0HLQ's PE Ratio?
PE Ratio16.6x
EarningsUS$3.35b
Market CapUS$55.56b

Price to Earnings Ratio vs Peers

How does 0HLQ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HLQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.5x
III 3i Group
8.1x16.4%UK£34.3b
ICG Intermediate Capital Group
15.1x11.8%UK£6.0b
HL. Hargreaves Lansdown
17.7x1.8%UK£5.2b
SDR Schroders
13x13.2%UK£4.9b
0HLQ Bank of New York Mellon
16.6x10.7%US$55.6b

Price-To-Earnings vs Peers: 0HLQ is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (13.5x).

Price to Earnings Ratio vs Industry

How does 0HLQ's PE Ratio compare vs other companies in the GB Capital Markets Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.3xn/aUS$36.23m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.5xn/aUS$6.40m
MAFL Mineral & Financial Investments
2.4xn/aUS$6.04m
No more companies available in this PE range
0HLQ 16.6xIndustry Avg. 11.7xNo. of Companies17PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HLQ is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the UK Capital Markets industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0HLQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HLQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.6x
Fair PE Ratio23.5x

Price-To-Earnings vs Fair Ratio: 0HLQ is good value based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (23.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HLQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$76.83
US$83.73
+9.0%
8.4%US$96.00US$70.00n/a16
Dec ’25US$81.87
US$81.73
-0.2%
6.6%US$90.00US$70.00n/a16
Nov ’25US$75.67
US$80.36
+6.2%
7.3%US$90.00US$66.00n/a16
Oct ’25US$71.26
US$73.01
+2.5%
6.7%US$80.00US$63.00n/a16
Sep ’25US$67.86
US$70.60
+4.0%
6.1%US$76.00US$60.00n/a17
Aug ’25US$64.32
US$70.31
+9.3%
6.6%US$76.00US$60.00n/a17
Jul ’25US$59.88
US$64.80
+8.2%
5.4%US$70.00US$58.00n/a17
Jun ’25US$58.56
US$64.21
+9.6%
5.8%US$70.00US$57.00n/a17
May ’25US$56.17
US$64.24
+14.4%
5.5%US$70.00US$58.00n/a17
Apr ’25US$57.69
US$62.29
+8.0%
6.0%US$68.00US$56.00n/a17
Mar ’25US$55.49
US$61.82
+11.4%
5.4%US$68.00US$56.00n/a17
Feb ’25US$55.34
US$61.14
+10.5%
5.9%US$68.00US$56.00n/a17
Jan ’25US$52.03
US$54.06
+3.9%
6.9%US$62.00US$48.00n/a17
Dec ’24US$48.69
US$52.62
+8.1%
8.8%US$62.00US$45.00US$81.8717
Nov ’24US$43.34
US$52.41
+20.9%
9.3%US$62.00US$45.00US$75.6717
Oct ’24US$42.83
US$53.29
+24.4%
9.2%US$62.00US$45.00US$71.2617
Sep ’24US$45.45
US$53.44
+17.6%
8.8%US$62.00US$45.00US$67.8618
Aug ’24US$44.95
US$53.39
+18.8%
9.0%US$62.00US$44.00US$64.3218
Jul ’24US$44.37
US$53.15
+19.8%
10.5%US$62.00US$42.00US$59.8817
Jun ’24US$41.32
US$52.97
+28.2%
10.8%US$62.00US$41.00US$58.5617
May ’24US$42.73
US$53.38
+24.9%
10.1%US$62.00US$41.00US$56.1717
Apr ’24US$45.13
US$55.65
+23.3%
9.8%US$64.00US$44.00US$57.6917
Mar ’24US$50.61
US$56.47
+11.6%
7.8%US$64.00US$49.00US$55.4917
Feb ’24US$50.40
US$56.00
+11.1%
8.3%US$64.00US$49.00US$55.3417
Jan ’24US$45.60
US$49.73
+9.1%
8.0%US$57.00US$44.00US$52.0315
Dec ’23US$45.35
US$48.80
+7.6%
8.5%US$57.00US$42.00US$48.6915

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 15:17
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

The Bank of New York Mellon Corporation is covered by 42 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
Ishan MajumdarBaptista Research
Jason GoldbergBarclays