• YX Insights
  • Posts
  • Which Banking Stocks Are Most Reasonably Valued?

Which Banking Stocks Are Most Reasonably Valued?

Comparing C, JPM, GS, MS, WFC, HSBC, UBS, SOFI valuations

Author

Yimin Xu
October 21, 2024

This article was updated on October 23, 2024

Hi YXI friends,

For analysing the US-listed banks, we are going to start with comparable valuations. I’ve kept the list short to include the mega-caps, but have added SOFI as a service member specifically requested it.

After this, we will actually do a light touch on both the fundamentals and price technicals of each name one by one. Again, I am experimenting with the format to strike a balance between depth and breadth.

Let’s dive in!

Ticker

Name

C

Citigroup Inc.

JPM

JPMorgan Chase & Co.

GS

The Goldman Sachs Group Inc.

MS

Morgan Stanley

WFC

Wells Fargo & Company

HSBC

HSBC Holdings plc

UBS

UBS Group AG

BAC

Bank of America Corporation

SOFI

SoFi Technologies Inc.

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Market Capitalisation vs Revenue

There is a pretty strong relationship between the market cap and revenue (R-squared as high as 0.92). It suggests that these banks are valued with a narrow multiples range.

2. Price / Sales vs TTM Revenue Growth

This is an YX Insights Premium note. You can claim your free 7-day full-access now!

Subscribe to YX Premium to read the rest.

Unlock YX Premium to get access to this post and other valuable subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • Lock in the price forever
  • • Daily market insights and in-depth single name coverage
  • • Actionable trade ideas plus longer-term outlooks
  • • Weekly webinars, live Q&As, and access to recordings