The Bank of New York Mellon Corporation

AI-generated fair value estimate for this company.

Method: 10-year FCFE DCF (bank valuation): $6.0B normalized net income base (TTM); net income used as proxy for free cash flow to equity since bank capex is minimal and retained earnings mainly fund regulatory capital; 7% annual earnings growth years 1-5, 4% years 6-10; 10% cost of equity (CAPM: ~4.3% risk-free + 1.05 beta x 5.5% equity risk premium); 3% terminal growth; 678.5M diluted shares outstanding.

Reasoning: BNY (the former Bank of New York Mellon, ticker changed from BK in May 2026) is a bank holding company where debt is a core operating input rather than financing, so a dividend/FCFE-style DCF discounted at cost of equity is more appropriate than a standard unlevered FCF/WACC model; growth assumptions moderate the current double-digit EPS growth toward a sustainable long-run pace.