The Bank of New York Mellon Corporation

Financial ServicesAsset ManagementNYSE

$130.50

Market Cap: $89.57B

The Bank of New York Mellon Corporation (BK) Valuation Summary

Updated May 10, 2026 12:59

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$386.98 – $647.54	$457.38	+250.5%
Growth Exit 10Y	$460.08 – $849.09	$565.53	+333.4%
EBITDA Exit 5Y	$390.13 – $530.40	$454.63	+248.4%
EBITDA Exit 10Y	$469.84 – $709.50	$572.74	+338.9%
▸ Trading Multiples
P/E	$100.82 – $241.16	$124.25	-4.8%
EV/EBITDA	$300.45 – $395.28	$279.98	+114.5%
EV/Revenue	$292.92 – $662.52	$285.72	+118.9%
▸ PEG
PEG Fair Value	$126.51 – $126.51	$126.51	-3.1%
▸ Earnings Power Value
Earnings Power Value	$307.69 – $375.61	$335.97	+157.4%
▸ Dividend Discount
Dividend Discount	$39.91 – $105.59	$60.13	-53.9%

Valuation History

DCF Analysis

Fair Value

$457.38

Market Price

$130.50

Upside / Downside

+250.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Bank of New York Mellon Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -46.9% to 26.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 232, DPO 870, DIO 60). At a 9.0% WACC with mid-year discounting, the terminal value (56% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $457.38 per share, suggesting BK is undervalued by 250.5% at the current price of $130.50.

FCFF Present Value Calculation

WACC

8.97%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	1,113	1,153	1,199	1,244	1,572	1,611
(−) Net Interest	7,430	7,699	8,010	8,308	10,499	10,761
(+) D&A	1,361	1,338	1,297	1,290	1,243	1,274
EBITDA	9,903	10,190	10,506	10,842	13,313	13,646

(−) Tax	249	258	268	278	352	360
(−) CapEx	1,101	1,141	1,187	1,231	1,556	1,595
(−) ΔWC	-62,688	-100	-115	-111	-812	-833
Free Cash Flow (FCFF)	71,242	8,891	9,166	9,444	12,218	12,524

Terminal Value						193,522
WACC / Discount Rate	9.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	68,246	7,816	7,394	6,991	8,300	125,941

Enterprise Value	224,689
Projection Period	98,748	43.9%
Terminal Value	125,941	56.1%

(−) Current Net Debt	(97,641)

Equity Value	322,330
(/) Outstanding Shares	705

Fair Price	$457.38

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
7.0%	$514	$537	$566	$602	$648
8.0%	$467	$483	$502	$524	$551
9.0%	$433	$445	$457	$472	$490
10.0%	$407	$416	$425	$436	$448
11.0%	$387	$393	$400	$408	$417

Current price: $130.50. Green = undervalued, Red = overvalued.

Fair Value

$565.53

Market Price

$130.50

Upside / Downside

+333.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Bank of New York Mellon Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -46.9% to 6.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 232, DPO 870, DIO 60). At a 9.0% WACC with mid-year discounting, the terminal value (51% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $565.53 per share, suggesting BK is undervalued by 333.4% at the current price of $130.50.

FCFF Present Value Calculation

WACC

8.97%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	1,113	1,153	1,199	1,244	1,572	1,925	2,283	2,618	2,900	3,100	3,178
(−) Net Interest	7,430	7,699	8,010	8,308	10,499	12,858	15,247	17,485	19,372	20,707	21,225
(+) D&A	1,361	1,338	1,297	1,290	1,243	1,243	1,404	1,628	1,909	2,236	2,292
EBITDA	9,903	10,190	10,506	10,842	13,313	16,027	18,934	21,731	24,181	26,044	26,695

(−) Tax	249	258	268	278	352	431	511	586	649	694	711
(−) CapEx	1,101	1,141	1,187	1,231	1,556	1,905	2,259	2,591	2,871	3,069	3,145
(−) ΔWC	-62,688	-100	-115	-111	-812	-875	-886	-830	-699	-495	-508
Free Cash Flow (FCFF)	71,242	8,891	9,166	9,444	12,218	14,565	17,049	19,384	21,361	22,777	23,347

Terminal Value											360,767
WACC / Discount Rate	9.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	68,246	7,816	7,394	6,991	8,300	9,080	9,754	10,177	10,291	10,070	152,792

Enterprise Value	300,912
Projection Period	148,120	49.2%
Terminal Value	152,792	50.8%

(−) Current Net Debt	(97,641)

Equity Value	398,553
(/) Outstanding Shares	705

Fair Price	$565.53

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
7.0%	$671	$702	$740	$788	$849
8.0%	$593	$613	$637	$665	$700
9.0%	$537	$550	$566	$584	$605
10.0%	$494	$503	$514	$526	$540
11.0%	$460	$467	$475	$483	$493

Current price: $130.50. Green = undervalued, Red = overvalued.

Fair Value

$454.59

Market Price

$130.50

Upside / Downside

+248.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Bank of New York Mellon Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -46.9% to 26.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 232, DPO 870, DIO 60). At a 9.0% WACC with mid-year discounting, the terminal value (56% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $454.63 per share, suggesting BK is undervalued by 248.4% at the current price of $130.50.

FCFF Present Value Calculation

WACC

8.97%

3% – 20%

EV/EBITDA Exit Multiple

13.96x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	1,113	1,153	1,199	1,244	1,572	1,611
(−) Net Interest	7,430	7,699	8,010	8,308	10,499	10,761
(+) D&A	1,361	1,338	1,297	1,290	1,243	1,274
EBITDA	9,903	10,190	10,506	10,842	13,313	13,646

(−) Tax	249	258	268	278	352	—
(−) CapEx	1,101	1,141	1,187	1,231	1,556	—
(−) ΔWC	-62,688	-100	-115	-111	-812	—
Free Cash Flow (FCF)	71,242	8,891	9,166	9,444	12,218	—

Peers' EBITDA Multiple						14.0x
Terminal Value						190,502
WACC / Discount Rate	8.97%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	68,246	7,816	7,394	6,991	8,300	123,976

Enterprise Value	222,723
Projection Period	98,748	44.3%
Terminal Value	123,976	55.7%

(−) Current Net Debt	(97,641)
Equity Value	320,364
(÷) Outstanding Shares	705M
Fair Price	$455	+248.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.0x	12.0x	14.0x	16.0x	18.0x
7.0%	$420	$447	$475	$503	$530
8.0%	$412	$438	$465	$491	$517
9.0%	$404	$429	$455	$480	$505
10.0%	$397	$421	$445	$469	$493
11.0%	$390	$413	$436	$459	$482

Current price: $130.50. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$572.69

Market Price

$130.50

Upside / Downside

+338.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Bank of New York Mellon Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -46.9% to 6.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 232, DPO 870, DIO 60). At a 9.0% WACC with mid-year discounting, the terminal value (52% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.0x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $572.74 per share, suggesting BK is undervalued by 338.9% at the current price of $130.50.

FCFF Present Value Calculation

WACC

8.97%

3% – 20%

EV/EBITDA Exit Multiple

13.96x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	1,113	1,153	1,199	1,244	1,572	1,925	2,283	2,618	2,900	3,100	3,178
(−) Net Interest	7,430	7,699	8,010	8,308	10,499	12,858	15,247	17,485	19,372	20,707	21,225
(+) D&A	1,361	1,338	1,297	1,290	1,243	1,243	1,404	1,628	1,909	2,236	2,292
EBITDA	9,903	10,190	10,506	10,842	13,313	16,027	18,934	21,731	24,181	26,044	26,695

(−) Tax	249	258	268	278	352	431	511	586	649	694	—
(−) CapEx	1,101	1,141	1,187	1,231	1,556	1,905	2,259	2,591	2,871	3,069	—
(−) ΔWC	-62,688	-100	-115	-111	-812	-875	-886	-830	-699	-495	—
Free Cash Flow (FCF)	71,242	8,891	9,166	9,444	12,218	14,565	17,049	19,384	21,361	22,777	—

Peers' EBITDA Multiple											14.0x
Terminal Value											372,669
WACC / Discount Rate	8.97%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	68,246	7,816	7,394	6,991	8,300	9,080	9,754	10,177	10,291	10,070	157,833

Enterprise Value	305,952
Projection Period	148,120	48.4%
Terminal Value	157,833	51.6%

(−) Current Net Debt	(97,641)
Equity Value	403,593
(÷) Outstanding Shares	705M
Fair Price	$573	+338.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.0x	12.0x	14.0x	16.0x	18.0x
7.0%	$555	$594	$632	$671	$709
8.0%	$531	$566	$601	$636	$671
9.0%	$509	$541	$573	$605	$637
10.0%	$488	$518	$547	$576	$605
11.0%	$470	$497	$523	$550	$577

Current price: $130.50. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$124.25

Market Price

$130.50

Upside / Downside

-4.8%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Bank of New York Mellon Corporation (BK) has a fair value of $124.25 based on 9 comparable companies in the Asset Management industry.

P/E Valuation — Asset Management

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
The Bank of New York Mellon CorporationBK	91,968	17.6x	17.9x
BlackRock, Inc.BLK	168,545	30.6x	23.0x
Blackstone Inc.BX	148,680	31.9x	23.1x
Ameriprise Financial, Inc.AMP	42,221	12.8x	12.0x
State Street CorporationSTT	41,177	15.8x	14.7x
Northern Trust CorporationNTRS	29,683	18.4x	18.5x
T. Rowe Price Group, Inc.TROW	22,196	11.2x	10.6x
Principal Financial Group, Inc.PFG	21,608	19.1x	12.1x
Franklin Resources, Inc.BEN	16,135	34.1x	14.6x
Ares Capital CorporationARCC	13,650	10.2x	8.1x
Industry Median		18.4x	14.6x
(*) Profit after tax		5,549	5,151
Equity Value		101,844	73,279
(/) Outstanding shares		705	705
Fair Price		$145	$104

Selected Fair Value (avg of trailing + forward)

$124.25

-4.8%

Fair Value

$279.98

Market Price

$130.50

Upside / Downside

+114.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Bank of New York Mellon Corporation (BK) has a fair value of $279.98 based on 8 comparable companies in the Asset Management industry.

EV/EBITDA Valuation — Asset Management

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
The Bank of New York Mellon CorporationBK	91,968	-0.6x	-1.3x
BlackRock, Inc.BLK	168,545	20.3x	20.5x
Blackstone Inc.BX	148,680	22.1x	24.0x
Ameriprise Financial, Inc.AMP	42,221	7.5x	7.8x
T. Rowe Price Group, Inc.TROW	22,196	6.8x	6.8x
Principal Financial Group, Inc.PFG	21,608	12.8x	12.7x
Franklin Resources, Inc.BEN	16,135	18.3x	24.3x
Ares Capital CorporationARCC	13,650	13.1x	13.7x
Invesco Ltd.IVZ	12,259	14.8x	20.3x
Industry Median		14.0x	17.0x
(*) EBITDA		8,910	4,412
= Enterprise Value		124,411	74,929
(-) Net Debt		-97,641	-97,641
Equity Value		222,052	172,570
(/) Outstanding shares		705	705
Fair Price		$315	$245

Selected Fair Value (avg of trailing + forward)

$279.98

+114.5%

Fair Value

$285.72

Market Price

$130.50

Upside / Downside

+118.9%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Bank of New York Mellon Corporation (BK) has a fair value of $285.72 based on 8 comparable companies in the Asset Management industry.

EV/Revenue Valuation — Asset Management

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Bank of New York Mellon CorporationBK	91,968	-0.1x	-0.3x
BlackRock, Inc.BLK	168,545	7.1x	7.2x
Blackstone Inc.BX	148,680	11.5x	12.5x
Ameriprise Financial, Inc.AMP	42,221	2.0x	2.1x
T. Rowe Price Group, Inc.TROW	22,196	2.7x	2.7x
Principal Financial Group, Inc.PFG	21,608	1.4x	1.4x
Franklin Resources, Inc.BEN	16,135	2.9x	3.9x
Ares Capital CorporationARCC	13,650	9.1x	9.5x
Invesco Ltd.IVZ	12,259	3.2x	4.4x
Industry Median		3.1x	4.2x
(*) Revenue		40,441	20,025
= Enterprise Value		124,316	83,120
(-) Net Debt		-97,641	-97,641
Equity Value		221,957	180,761
(/) Outstanding shares		705	705
Fair Price		$315	$256

Selected Fair Value (avg of trailing + forward)

$285.72

+118.9%

PEG Fair Value

Fair Value

$126.51

Market Price

$130.50

Upside / Downside

-3.1%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 14.5% plus 1.6% dividend yield, the company has a fair value of $126.51 based on NTM EPS (FY2026) of $8.74. The current PEG ratio is 1.03.

PEG Ratio

1.03Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 14.9 ÷ (12.9% + 1.6%) = 1.03

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	12.9%
Dividend Yield	+1.6%
Adjusted Growth (clamped 8–25%)	14.5%
Fair P/E	14.5x
NTM EPS (FY2026)	$8.74
Fair Value	$126.51

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$7.41	—	—
FY2026E	$8.74	+18.0%	9
FY2027E	$9.58	+9.6%	9
FY2028E	$10.65	+11.1%	5

3Y Forward EPS CAGR: 12.9%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$3.8B	$4.15	—
FY2022	$2.6B	$2.90	-30.1%
FY2023	$3.3B	$3.89	+34.1%
FY2024	$4.5B	$5.80	+49.1%
FY2025	$5.5B	$7.41	+27.8%

4Y Historical EPS CAGR: 15.6%

Earnings Power Value

Fair Value

$335.97

Market Price

$130.50

Upside / Downside

+157.4%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 9.0% and normalized earnings of $12.5B, the company has a fair value of $335.97 per share. The EPV range is $307.69 – $375.61 based on WACC sensitivity (7.5% – 10.5%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	12,482	12,482	12,482
(/) WACC	10.5%	9.0%	7.5%
Enterprise Value	119,200	139,130	167,062
(-) Net debt	-97,641	-97,641	-97,641
Equity Value	216,841	236,771	264,703
(/) Outstanding shares	705	705	705
Fair Price	$307.69	$335.97	$375.61

Dividend Discount Model

Fair Value

$60.13

Market Price

$130.50

Upside / Downside

-53.9%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.9% and projected dividend growth of 12.6%, the fair value is $60.13 per share. The DDM range is $39.91 – $105.59 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.05

Dividend Yield

1.62%

Payout Ratio

26.1%

Dividend Coverage

3.83x

FCF Payout Ratio28.0%

DPS CAGR (4Y)11.8%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$2.05	26.1%	+13.9%
2024	$1.80	29.8%	+12.5%
2023	$1.60	38.2%	+12.0%
2022	$1.43	45.6%	+8.7%
2021	$1.31	30.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$2.31	12.6%	0.9270	$2.14
2027	$2.60	12.6%	0.8593	$2.24
2028	$2.93	12.6%	0.7966	$2.33
2029	$3.30	12.6%	0.7384	$2.44
2030	$3.71	12.6%	0.6845	$2.54
Terminal Value	$3.81 DPS	2.5%		$48.44

PV of Projected Dividends$11.69

PV of Terminal Value$48.44

Fair Value per Share$60.13

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	10.6%	11.6%	12.6%	13.6%	14.6%
5.9%	$89	$93	$97	$101	$106
6.9%	$68	$71	$74	$78	$81
7.9%	$55	$58	$60	$63	$65
8.9%	$46	$48	$50	$52	$55
9.9%	$40	$42	$43	$45	$47

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.