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Bank of New York Mellon Corporation (BK) has drawn fresh attention after recent trading, with the stock last closing at US$117.74 and showing a mix of short term pullbacks and longer term gains across different time frames.
See our latest analysis for Bank of New York Mellon.
Recent trading has been choppy, with a 2.46% 1 day share price return following a softer 7 day and 30 day patch. At the same time, the 90 day share price return of 10.27% and 1 year total shareholder return of 36.86% indicate momentum has been building over a longer horizon.
If this kind of move in a large financial group has your attention, it may be a useful moment to broaden your search and check out 23 top founder-led companies as potential next ideas.
With Bank of New York Mellon Corporation trading at US$117.74, sitting about 4% below one intrinsic value estimate and roughly 13% under one analyst price target, you might ask yourself whether there is still a buying opportunity here or if BNY is already pricing in future growth.
At $117.74, Bank of New York Mellon Corporation is set against a widely followed fair value estimate of $132.60, which is built on a detailed cash flow and earnings view discounted at 9.88%.
Accelerated investment in digital platforms (including digital asset custody, AI integration, and the NEXEN ecosystem), coupled with strong early adoption, positions BNY Mellon for improved operating leverage and net margin expansion over the coming years, as scalable technology reduces costs and increases cross-selling opportunities.
Curious what level of revenue growth, margin improvement and future P/E multiple are baked into that $132.60 figure? The full narrative lays out a tight set of assumptions around fee income, earnings expansion and capital returns that you will probably want to see in black and white before you decide how this 11.2% discount sits with your own expectations.
Result: Fair Value of $132.60 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to keep an eye on risks such as fee pressure from passive investing and the possibility that expected efficiency gains from new technology disappoint.
Find out about the key risks to this Bank of New York Mellon narrative.
If you are not fully aligned with this view or prefer to rely on your own work, you can review the same data and build a personal thesis in just a few minutes. Start with Do it your way.
A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Bank of New York Mellon.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BK.
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