Considering its price-to-tangible book value, JPMorgan is currently selling at lofty prices, as are a handful of other financials.
Lots of banks may be too expensive even for Jamie Dimon 's liking. JPMorgan Chase fell 4.5% on Monday after the bank's chief executive said the stock was too expensive for the bank to buy back shares at their current valuation. Speaking at JPMorgan's Investor Day event, Dimon said, "We're not going to buy a lot of stock with these prices … Buying back stock as a financial company greatly in excess of 2x tangible book is a mistake. We aren't going to do it.
"We also think investors should respect fact that JPM is prioritizing long term growth instead of buying back stock at a dilutive price for a quick but short lived EPS pop," the analyst added. Following Dimon's comments, CNBC Pro screened for banks in the S & P 500 that also sport a price-to-tangible book value of 2 or more. With a price-to-tangible book value of 2.6, Bank of New York Mellon was the most expensive name on the list.
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