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Arphra AIPlain-English read on The Bank of New York Mellon Corporation’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$112.96
-19.01% vs spot
Underweight
Spot price
$139.47
Mkt cap $95.73B
subtle cardAnalyst PT consensus
$139.86
+0.28% vs spot
subtle cardMethods covered
18 / 20
9 in blend
subtle cardFootball field
BK · fair-value range by method
Method comparison
BK · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $466.72 | $399.40 – $781.67 | +234.64% | 6.0% | WACC 9.4%, g₀=4.4%, gₗ=7.0% | high |
| DDM · Gordon | ddm | $105.78 | $72.96 – $192.24 | -24.16% | 11.9% | D₁ 2.20, kₑ 9.2%, gₗ 7.0% | med |
| DDM · H-model | ddm | $92.78 | $72.96 – $195.57 | -33.48% | — | D₀ 2.20, g₀=4.4%, gₗ=7.0%, H 5y | med |
| DDM · multi-stage | ddm | $99.54 | $84.61 – $114.47 | -28.63% | 11.9% | 5y schedule 4.4% → 7.0%, kₑ 9.2% | high |
| Residual income | income | $72.97 | $64.21 – $81.72 | -47.68% | 21.4% | BV 68.06, ROE 12.4% → kₑ | high |
| Excess returns | income | $103.77 | $91.31 – $116.22 | -25.60% | 14.3% | BV 68.06, ROE 12.4% | high |
| Justified P/E | multiple | $41.56 | $35.33 – $47.79 | -70.20% | 7.1% | Fair P/E 5.6 (payout 26%, kₑ 9.2%, g 4.4%) | med |
| P/E · sector | multiple | $103.74 | $91.29 – $116.19 | -25.62% | 9.5% | EPS 7.41 × peer P/E 14.0 | med |
| Justified P/B | multiple | $112.39 | $95.53 – $129.25 | -19.42% | 11.9% | Fair P/B 1.65 · ROE 12.4%, kₑ 9.2% | high |
| P/S · sector | multiple | $184.28 | $156.63 – $211.92 | +32.13% | — | Rev/sh 61.43 × peer P/S 3.00 | med |
| EV / EBITDA | multiple | $283.64 | $249.60 – $317.68 | +103.37% | — | EBITDA × peer 10.0× − ND -97.6B | high |
| EV / EBIT | multiple | $276.95 | $235.41 – $318.49 | +98.57% | — | EBIT × peer 12.0× − ND | med |
| EV / Sales | multiple | $304.94 | $259.20 – $350.68 | +118.64% | — | Sales × peer 2.55× − ND | med |
| PEG-anchored | multiple | $136.89 | $116.36 – $157.42 | -1.85% | — | PEG=1, fwd EPS g 18.5% | med |
| Earnings power | intrinsic | $239.25 | $210.54 – $267.96 | +71.54% | — | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $126.04 | $107.13 – $144.95 | -9.63% | — | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $37.05 | $31.49 – $42.61 | -73.44% | — | PE = g (4.4) | low |
| Book NAV | asset | $68.06 | $64.66 – $71.46 | -51.20% | 6.0% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | — | — | — | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -20.0% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (1.07)β | × 1.07 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 9.22% |
| Pre-tax cost of debtkd | 12.00% |
| Effective tax ratet | 20.7% |
| After-tax cost of debt | 9.52% |
| Equity weight$44.8B | 56.9% |
| Debt weight$33.9B | 43.1% |
| WACC | 9.35% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | -46.84% |
| Analyst forward EPS growthFMP | 18.47% |
| Historical 5y revenue CAGRFY | 26.37% |
| Historical 5y EPS CAGRFY | 15.60% |
| Sustainable g (ROE × retention)Δ | 9.15% |
| Blended near-term growth (g₀) | 4.37% |
| Terminal growth (gₗ) | 7.00% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2022-12-30)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Financial Services (live sector PE unavailable)
- FMP /price-target-consensus— mean $139.86
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.