Bank of Montreal
Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian Personal and Commercial Banking; U.S. Banking; Wealth Management; and Capital Markets segments. The company offers chequing accounts, savings accounts, money markets and certificates of…
Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian Personal and Commercial Banking; U.S. Banking; Wealth Management; and Capital Markets segments. The company offers chequing accounts, savings accounts, money markets and certificates of deposits, debit cards, overdrafts, digital banking, credit cards, loans, mortgages, investment and retirement options, and other banking services; and commercial banking products and services, including financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; offers investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.After signing in, return here and select “Add to watchlist”. Saving companies requires a verified email address.
Looks undervalued
Why: Banks and insurers earn their money on their balance sheet, so value follows book value and how much the company earns on it (return on equity).
Start with the price and fair value range, then review the data dates and assumptions below. Estimates are not predictions or investment advice.
Market price below modeled range
Showing the DCF (trailing free cash flow) you selected on the company card, using 3% growth, 2.4% terminal growth and 9.6% discount. The range varies these assumptions slightly; it is illustrative, not investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
Assumptions: growth 3% (limited from 17.97% because the latest annual revenue declined), discount rate 9.60%, terminal growth 2.40%. See a worked example.
Blended growth assumption: 18.0% (sector default 5.4%, own revenue history 30.5%).
5-year outlook: relative outlook of about 6.8% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Adjust assumptions
Show the recommended model instead
Why this model: Banks and insurers earn their money on their balance sheet, so value follows book value and how much the company earns on it (return on equity).
Compare models- Recommended: Justified P/B (ROE) — CAD 140.05 (-42.1%)
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EPS-based Gordon proxy
— CAD 185.50 (-23.3%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— CAD 983.48 (+306.9%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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FCFF (steady state)
— CAD 967.54 (+300.3%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/EBITDA (12x)
— CAD 602.24 (+149.2%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— CAD 982.88 (+306.7%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/Sales (Rule of 40)
— CAD 834.36 (+245.2%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear CAD 748.75 | 67.7% |
| Base CAD 983.48 | 75.4% |
| Bull CAD 1445.84 | 83.3% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
1 month price change: +5.49% · CAD 241.70 · Market data through 05 Nov 2026 ; dashed line is today’s model base value (CAD 983.48). The fair value is today’s estimate, not what the model said in the past.
Saved price history is current through 05 Nov 2026; last refreshed 06 Nov 2026 18:14 (27 minutes ago).
07 Oct 2026Range CAD 226.83 – 247.6105 Nov 2026
Latest news
Headlines provided by EODHD. Articles may mention multiple companies and are not investment recommendations.
More detail: quality, peers, price history, dividends and financials
Quality score: 90 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +31.2% a year | 20 / 20 |
| Balance sheet | net cash | 20 / 20 |
| Margins | EBITDA margin 19% | 10 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| BMO.TO (this company) | CAD 241.70 | -72.6% | 18.5 | 2.0 | 3.0% | 90 |
| BRK-B Berkshire Hathaway Inc. (Class B) | USD 571.97 | 99.9% | 0.0 | 0.0 | – | 92 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.66 | 68.4% | 3.7 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.86 | 45.8% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.84 | 36.1% | 6.8 | 0.7 | 6.9% | 78 |
| PRU.L Prudential plc | GBP 9.23 | 34.4% | 8.0 | 1.6 | 1.9% | 78 |
| V Visa Inc. | USD 422.59 | 33.3% | 8.9 | – | 0.2% | 100 |
| AGS.BR ageas SA/NV | EUR 77.50 | 32.6% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.87 | 30.2% | 8.2 | 1.3 | 5.0% | 88 |
| Peer median | 7.6 | 1.3 | ||||
Dividends
Paid in the last 12 months: CAD 6.76 per share · yield 2.80% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 6.760 |
| 2025 | 6.440 |
| 2024 | 6.120 |
| 2023 | 5.800 |
| 2022 | 6.523 |
| 2021 | 5.088 |
Trailing 12-month financials
TTM through 31 Jul 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 14:12
| Revenue | CAD 77,919,000,000 |
|---|---|
| EBITDA | CAD 14,516,000,000 |
| EBIT | CAD 12,308,000,000 |
| Net income | CAD 9,152,000,000 |
| Free cash flow | CAD 30,271,000,000 |
| Capital expenditures | CAD 1,931,000,000 |
| Debt | CAD 167,340,000,000 |
| Cash | CAD 415,725,000,000 |
| Working capital | CAD -57,134,000,000 |
| Shares outstanding | 701,681,000 |
| Reported dividends per share | CAD 7.2939 |