It's been a great afternoon session for Bank Of Montreal investors, who saw their shares rise 4.5% to a price of $118.91 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Undervaluing Bank Of Montreal's Earnings and Assets:
Bank of Montreal provides diversified financial services primarily in North America. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Bank Of Montreal has a trailing 12 month P/E ratio of 15.3 and a P/B ratio of 1.02.
Bank Of Montreal has moved 36.6% over the last year compared to 14.5% for the S&P 500 — a difference of 22.1%. Bank Of Montreal has a 52 week high of $118.93 and a 52 week low of $81.13.
A Positive EPS Growth Rate but Positive Cash Flows:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,986 | $6,573 | $10,570 | $8,319 | $8,957 | $8,679 |
| Interest Income (M) | $1,615 | $1,272 | $5,357 | $10,659 | $11,426 | $10,557 |
| Net Margins | 26% | 33% | 42% | 21% | 26% | 23% |
| Net Income (M) | $1,584 | $2,159 | $4,483 | $1,710 | $2,304 | $1,962 |
| Earnings Per Share | $2.37 | $3.23 | $6.51 | $2.19 | $2.94 | $2.5 |
| EPS Growth | n/a | 36.29% | 101.55% | -66.36% | 34.25% | -14.97% |
| Free Cash Flow (M) | $50,836 | $44,049 | $4,957 | $9,591 | $29,030 | -$3,193 |
