Jpmorgan Chase: Financial Analysis

Satisfactory Essays
Intrinsically, I am a person authorized for the financial department, will definitely allocate the budget of $1 million U.S. dollars to various form of investments. One of investments that I will definitely choose is an investment with higher revenue generated in the current year. Based on the stock analysis, the highest revenue generated is conquered by JPMorgan Chase, followed by Wells Fargo & Co. and Citi Group Inc. However, higher revenue does not guarantee a profitable investment. There are other factors that we need to consider when we focus on increasing a firm’s value such as price per earning, the total return as well as the type of the firm’s industry. Based on my experience with FIN102 class, I will most likely to choose a banking…show more content…
I choose these firms because of the lower price per earnings relatively to higher revenue generated for each firm. A low P/E indicate either that a firm have done a great job relative to its past trends. In general, lower the price per earnings, the better performance of the firm. Since JPMorgan has the lowest price per earnings, that is the significant reason of why I invest more in that firm, correspondingly, it has generate highest revenue for the firm, which is $104,211,998,720.00. I also choose to invest 35 % in SunTrust Banks because it has a price per earnings of $12, slightly higher than JPMorgan Chase however lower than US Bancorp and a revenue of $8,785,999,872 that are lower than JPMorgan Chase and US Bancorp. I emphasize more on price per earnings and a positive total return regardless of the amount of revenues generated in the current year. US Bancorp has the highest price per earnings among these three, $13.36, which it could lead to lower value of a firm and a revenue of $22,112,999,936 that are lower than JPMorgan Chas’s. All the total return for each firm have a positive value, which indicates a good sign for the firm’s
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