AlphaMadera's AlphaVal page classifies Bank of New York Mellon Corp as a Banks, Insurers & Asset Managers business and values it using P/Tangible Book × ROE Quality, then compares the result to the current market price to flag BNY as undervalued, fairly valued, or overvalued.

What is Bank of New York Mellon Corp's fair value?

Fair value for BNY comes from a P/Tangible Book × ROE Quality model -- the approach AlphaVal selected for this company's Banks, Insurers & Asset Managers classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value BNY?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. BNY was classified as Banks, Insurers & Asset Managers and is valued using P/Tangible Book × ROE Quality, built from BNY's most recent reported fundamentals.

BNY - Bank of New York Mellon Corp

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $168.50 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Overvalued Strong

Trading 48.3% above fair value

Current Price $162.50

Bear Case $76.23 53.1% downside ($76.23 - $162.50) / $162.50 = -53.1% ROTCE 16.8% → 2.12x TBV

Fair Value $109.56 32.6% downside ($109.56 - $162.50) / $162.50 = -32.6% ROTCE 22.4% → 3.04x TBV

Bull Case $129.56 20.3% downside ($129.56 - $162.50) / $162.50 = -20.3% ROTCE 25.8% → 3.60x TBV

Adjust Assumptions

Return on Tangible Equity

22.4%

Cost of Equity

10.1%

Key Value Driver

ROTCE (22.4%) vs. cost of equity (10.1%)

Terminal Value % of EV

Implied Market Multiple 4.51x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 22.4% vs. 10.1% cost of equity, fair P/TBV is 3.04x on $36.02 tangible book, implying $109.56 per share. DDM cross-check: $985.06.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (22 analysts) $168.50

Analyst Range $147.00 – $180.00

Divergence from AlphaVal 35%

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.

⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

ℹ Dividend-based valuation: $985.06 (799% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

ℹ Wall Street's average price target is $168.50 (from 22 analysts). Our estimate is 35% below the consensus -- consider that gap carefully.

Key Risks

Book value quality matters as much as level — check loan loss reserves
Interest rate sensitivity creates non-linear earnings surprises
Insurance reserving is actuarial, not financial — errors emerge slowly