The Bank of New York Mellon Corporation

NYSE:BK Stock Report

Market Cap: US$50.3b

Bank of New York Mellon Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: BK ($68.1) is trading below our estimate of fair value ($91.03)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.7x
AMP Ameriprise Financial
13.9x3.8%US$42.8b
ARES Ares Management
74.7x32.4%US$44.1b
STT State Street
15x18.1%US$24.7b
KKR KKR
27.2x20.1%US$105.0b
BK Bank of New York Mellon
15.7x9.7%US$50.3b

Price-To-Earnings vs Peers: BK is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (32.7x).

Price to Earnings Ratio vs Industry

How does BK's PE Ratio compare vs other companies in the US Capital Markets Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.2%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.2%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: BK is good value based on its Price-To-Earnings Ratio (15.7x) compared to the US Capital Markets industry average (20.3x).

Price to Earnings Ratio vs Fair Ratio

What is BK'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.

BK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: BK is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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 BK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$68.10
US$70.60
+3.7%
6.1%US$76.00US$60.00n/a17
Sep ’25US$68.22
US$70.60
+3.5%
6.1%US$76.00US$60.00n/a17
Aug ’25US$64.64
US$70.31
+8.8%
6.6%US$76.00US$60.00n/a17
Jul ’25US$60.11
US$64.80
+7.8%
5.4%US$70.00US$58.00n/a17
Jun ’25US$59.61
US$64.21
+7.7%
5.8%US$70.00US$57.00n/a17
May ’25US$56.46
US$64.24
+13.8%
5.5%US$70.00US$58.00n/a17
Apr ’25US$56.96
US$62.29
+9.4%
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$55.50
US$61.14
+10.2%
5.9%US$68.00US$56.00n/a17
Jan ’25US$52.05
US$54.06
+3.9%
6.9%US$62.00US$48.00n/a17
Dec ’24US$48.71
US$52.62
+8.0%
8.8%US$62.00US$45.00n/a17
Nov ’24US$43.17
US$52.41
+21.4%
9.3%US$62.00US$45.00n/a17
Oct ’24US$42.65
US$53.29
+25.0%
9.2%US$62.00US$45.00n/a17
Sep ’24US$45.42
US$53.44
+17.7%
8.8%US$62.00US$45.00US$68.2218
Aug ’24US$45.16
US$53.39
+18.2%
9.0%US$62.00US$44.00US$64.6418
Jul ’24US$44.52
US$53.15
+19.4%
10.5%US$62.00US$42.00US$60.1117
Jun ’24US$41.25
US$52.97
+28.4%
10.8%US$62.00US$41.00US$59.6117
May ’24US$42.14
US$53.38
+26.7%
10.1%US$62.00US$41.00US$56.4617
Apr ’24US$45.44
US$55.65
+22.5%
9.8%US$64.00US$44.00US$56.9617
Mar ’24US$50.52
US$56.47
+11.8%
7.8%US$64.00US$49.00US$55.4917
Feb ’24US$50.80
US$56.00
+10.2%
8.3%US$64.00US$49.00US$55.5017
Jan ’24US$45.52
US$49.73
+9.3%
8.0%US$57.00US$44.00US$52.0515
Dec ’23US$45.76
US$48.80
+6.6%
8.5%US$57.00US$42.00US$48.7115
Nov ’23US$42.23
US$48.23
+14.2%
9.8%US$57.00US$41.00US$43.1715
Oct ’23US$38.52
US$49.10
+27.5%
9.6%US$61.00US$44.00US$42.6515
Sep ’23US$41.36
US$49.23
+19.0%
9.3%US$61.00US$45.00US$45.4215

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

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