Bank of America Securities analyst Ebrahim Poonawala said that the market value of J.P. Morgan Chase is approaching the $1 trillion mark, and reaching this milestone may attract new investors and bring a “scarcity premium.” “As J.P. Morgan Chase is about to enter the trillion-dollar market capitalization club with only a few members, investors are underestimating the potential for further expansion of its valuation premium relative to peers,” Poonawala wrote in the report. He said that the median forward price-earnings ratio of the 11 S&P 500 index constituent stocks currently in this category is 20.7 times, while J.P. Morgan Chase is 14.1 times. J.P. Morgan could benefit because it could become “the only company outside the tech industry with a market capitalization of $1 trillion and a price-earnings ratio of only about 15 times”, which would attract “different types of investors.”

Bank of America Securities analyst Ebrahim Poonawala said that the market value of J.P. Morgan Chase is approaching the $1 trillion mark, and reaching this milestone may attract new investors and bring a “scarcity premium.” “As J.P. Morgan Chase is about to enter the trillion-dollar market capitalization club with only a few members, investors are underestimating the potential for further expansion of its valuation premium relative to peers,” Poonawala wrote in the report. He said that the median forward price-earnings ratio of the 11 S&P 500 index constituent stocks currently in this category is 20.7 times, while J.P. Morgan Chase is 14.1 times. J.P. Morgan could benefit because it could become “the only company outside the tech industry with a market capitalization of $1 trillion and a price-earnings ratio of only about 15 times”, which would attract “different types of investors.”