An independent two-stage DCF analysis by a frontier AI model.
" data-astro-cid-ouxxpmaw> BNY Mellon is a slow-growing but highly profitable custody bank. Revenue grew 7.8% in FY2025, but long-term structural growth is closer to low single digits. 4% reflects modest AUA/AUM growth and continued cost discipline.
" data-astro-cid-ouxxpmaw> Custody banks have less credit risk than traditional lenders. A 9% discount rate represents a modest premium over the 10-year Treasury, appropriate for a systemically important financial institution with highly recurring fee revenue.
" data-astro-cid-ouxxpmaw> A 2% perpetual growth rate aligns with long-term inflation targets and acknowledges that custody banking is a mature oligopoly. It won't outpace global GDP growth indefinitely.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% |
|---|---|---|---|---|---|
| 1.0% | $23.45 | $20.10 | $17.59 | $15.63 | $14.07 |
| 1.5% | $25.58 | $21.65 | $18.76 | $16.55 | $14.81 |
| 2.0% | $28.14 | $23.45 | $20.10 | $17.59 | $15.63 |
| 2.5% | $31.27 | $25.58 | $21.65 | $18.76 | $16.55 |
| 3.0% | $35.18 | $28.14 | $23.45 | $20.10 | $17.59 |
■ Undervalued vs current price ■ Overvalued vs current price
Westmount Research. "Bank of New York Mellon (BK) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026. Compiled by Gemini 3.1.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.