Bank of Montreal

NYSE:BMO Stock Report

Market Cap: US$68.7b

Bank of Montreal Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 BMO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BMO ($94.63) is trading below our estimate of fair value ($146.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BMO. This is calculated by dividing BMO's market cap by their current earnings.
What is BMO's PE Ratio?
PE Ratio15.3x
EarningsCA$6.30b
Market CapCA$95.93b

Price to Earnings Ratio vs Peers

How does BMO's PE Ratio compare to its peers?

The above table shows the PE ratio for BMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17x
USB U.S. Bancorp
15.7x11.6%US$79.2b
PNC PNC Financial Services Group
17.3x12.9%US$80.9b
C Citigroup
19.6x30.4%US$130.3b
FITB Fifth Third Bancorp
15.3x8.1%US$31.1b
BMO Bank of Montreal
15.3x11.8%US$95.9b

Price-To-Earnings vs Peers: BMO is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does BMO's PE Ratio compare vs other companies in the US Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
BMO 15.3xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BMO is expensive based on its Price-To-Earnings Ratio (15.3x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is BMO'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.

BMO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.3x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: BMO is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).

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 BMO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$94.63
US$93.45
-1.2%
9.1%US$105.95US$75.89n/a13
Nov ’25US$90.76
US$86.64
-4.5%
6.5%US$96.01US$75.95n/a14
Oct ’25US$91.25
US$88.23
-3.3%
5.7%US$98.02US$78.12n/a14
Sep ’25US$83.62
US$89.66
+7.2%
7.4%US$105.29US$78.64n/a15
Aug ’25US$82.64
US$93.35
+13.0%
7.8%US$102.45US$72.90n/a15
Jul ’25US$83.17
US$94.91
+14.1%
7.6%US$103.40US$73.58n/a14
Jun ’25US$89.11
US$95.65
+7.3%
7.4%US$103.74US$73.82n/a15
May ’25US$89.65
US$98.20
+9.5%
7.8%US$106.53US$74.20n/a15
Apr ’25US$97.61
US$98.20
+0.6%
7.8%US$106.53US$74.20n/a15
Mar ’25US$90.76
US$97.65
+7.6%
7.6%US$103.88US$74.41n/a13
Feb ’25US$94.11
US$99.52
+5.8%
7.8%US$108.37US$79.97n/a12
Jan ’25US$98.94
US$97.56
-1.4%
7.9%US$108.46US$80.04n/a12
Dec ’24US$84.22
US$92.82
+10.2%
9.7%US$106.88US$71.13n/a12
Nov ’24US$75.62
US$92.67
+22.6%
10.0%US$104.35US$69.45US$90.7612
Oct ’24US$84.37
US$94.93
+12.5%
9.7%US$106.20US$70.68US$91.2512
Sep ’24US$86.07
US$95.28
+10.7%
9.2%US$106.59US$70.94US$83.6214
Aug ’24US$91.10
US$99.66
+9.4%
8.7%US$109.53US$74.41US$82.6415
Jul ’24US$90.31
US$97.32
+7.8%
9.0%US$107.45US$73.00US$83.1715
Jun ’24US$84.43
US$97.93
+16.0%
10.3%US$119.17US$72.86US$89.1115
May ’24US$89.85
US$103.91
+15.7%
9.9%US$117.37US$71.75US$89.6515
Apr ’24US$89.11
US$103.91
+16.6%
9.9%US$117.37US$71.75US$97.6115
Mar ’24US$95.95
US$105.73
+10.2%
10.0%US$120.86US$72.07US$90.7615
Feb ’24US$100.68
US$106.61
+5.9%
11.0%US$122.81US$69.50US$94.1115
Jan ’24US$90.60
US$104.20
+15.0%
11.5%US$120.01US$65.72US$98.9415
Dec ’23US$99.02
US$107.47
+8.5%
10.2%US$117.63US$70.73US$84.2214
Nov ’23US$91.95
US$108.93
+18.5%
7.5%US$117.67US$83.63US$75.6214

Analyst Forecast: Target price is lower than the current share price.

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