At this time, the firm appears to be undervalued. Bank of Montreal shows a prevailing Real Value of C$164.66 per share. The current price of the firm is C$143.32. Our model approximates the value of Bank of Montreal from analyzing the firm fundamentals such as Return On Equity of 0.0849, profit margin of 0.21 %, and Current Valuation of (76.9 B) as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Bank of Montreal's valuation include:
Price Book
1.2683
Enterprise Value
-76.9 B
Price Sales
3.33
Forward PE
12.9702
Trailing PE
15.0546
Undervalued
Today 143.32
Please note that Bank of Montreal's price fluctuation is very steady at this time. Calculation of the real value of Bank of Montreal is based on 3 months time horizon. Increasing Bank of Montreal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Bank of Montreal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bank Stock. However, Bank of Montreal's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 143.32
Real 164.66
Hype 143.32
The intrinsic value of Bank of Montreal's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Bank of Montreal's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Bank of Montreal helps investors to forecast how Bank stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Bank of Montreal more accurately as focusing exclusively on Bank of Montreal's fundamentals will not take into account other important factors:
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Bank of Montreal's intrinsic value based on its ongoing forecasts of Bank of Montreal's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Bank of Montreal's closest peers.
Bank of Montreal Cash
441.21 Billion
Bank Valuation Trend
Knowing Bank of Montreal's actual value is paramount for traders when making sound investment determinations. Using both Bank of Montreal's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Bank of Montreal Total Value Analysis
Bank of Montreal is currently estimated to have takeover price of (76.9 B) with market capitalization of 104.6 B, debt of 248.74 B, and cash on hands of 331.58 B. The negative valuation of Bank of Montreal may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should thoroughly investigate all of the Bank of Montreal fundamentals.
About 53.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.27. Some equities with similar Price to Book (P/B) outperform the market in the long run. Bank of Montreal has Price/Earnings To Growth (PEG) ratio of 1.39. The entity recorded earning per share (EPS) of 9.52. The firm last dividend was issued on the 30th of October 2024. Bank of Montreal had 2:1 split on the 1st of March 2001. Bank of Montreal may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Bank suggests not a very effective usage of assets in January.
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Bank of Montreal Ownership Allocation
Bank of Montreal holds a total of 729.87 Million outstanding shares. Over half of Bank of Montreal's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Bank of Montreal. Please watch out for any change in the institutional holdings of Bank of Montreal as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Bank of Montreal Profitability Analysis
The company reported the revenue of 29.02 B. Net Income was 4.37 B with profit before overhead, payroll, taxes, and interest of 31.41 B.
Bank of Montreal Past Distributions to stockholders
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Bank of Montreal. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bank of Montreal based exclusively on its fundamental and basic technical indicators. By analyzing Bank of Montreal's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Bank of Montreal's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Bank of Montreal. We calculate exposure to Bank of Montreal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Bank of Montreal's related companies.
When determining whether Bank of Montreal offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of Montreal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of Montreal Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of Montreal Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of Montreal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
To learn how to invest in Bank Stock, please use our How to Invest in Bank of Montreal guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Please note, there is a significant difference between Bank of Montreal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Montreal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Montreal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.