Bank of Montreal
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$100.02
Market Price
$166.75
Overvalued By
66.7%
Method: 5-year residual-income model: $86.88 starting book value per share; 10.22% return on equity held flat (in line with TTM); 9.5% cost of equity; 3% terminal growth; 697.15M shares outstanding.
Reasoning: Bank of Montreal is valued using book value plus the present value of returns above its cost of equity, the standard rigorous approach for a large, mature, diversified bank, rather than a free-cash-flow DCF that is less meaningful for a deposit-funded financial institution.