BMO.TO Stock Today: January 11 Undervaluation Signal vs P/E Reality
BMO stock sits in focus today as investors weigh an undervaluation signal against P/E reality. Shares of BMO.TO trade near C$184.59, while one model places intrinsic value around CA$261.85. At roughly 16x earnings and 1.49x book, Bank of Montreal looks fairly valued on multiples. The debate is about rate cut expectations from the Bank of Canada versus credit costs. We lay out the key numbers, setup into earnings, and the technical read for Canadian portfolios.
Intrinsic value vs. market pricing
Simply Wall St’s model pegs intrinsic value near CA$261.85 for Bank of Montreal, implying upside from today’s price, though models vary by inputs and growth paths. See their note for context and assumptions source. For BMO stock, that signal supports a long-term value case, but investors should cross-check with cash flows, risk weights, and capital trends.
On simple multiples, BMO stock trades near 16.1x TTM EPS and about 1.49x price to book. Price to sales is 1.70x and price to free cash flow is 15.68x. The Graham number sits close to CA$184.15, near the current price. This points to a fair valuation on earnings and book, even if discounted cash flow models indicate more upside.
Rates, credit, and earnings setup
Lower policy rates could aid loan demand and support fair values of securities, but may also trim net interest margins. Credit costs remain a swing factor. Debt to equity is 4.72x, typical for banks, and interest coverage is 0.27x, which keeps risk in view. For BMO stock, a soft landing with stable provisions would help the value case.
Bank of Montreal reports next on February 24, 2026. The trailing dividend yield is about 3.50 percent on C$6.44 per share, with a 57.8 percent payout ratio. Watch net interest income, fee trends, expense discipline, and provisions for credit losses. Clear guidance on capital and buybacks could be another catalyst for BMO stock into spring.
Momentum and technicals today
Price sits near the upper Bollinger Band at C$185.85, with the 50 day average at C$176.67. RSI is 63.53, MACD is positive, and Stochastics show %K at 82.62, a near overbought read. ADX at 16.26 signals no strong trend. For BMO stock, this looks like a steady grind with room for pauses near C$180 support.
Average volume is about 2.44 million and today’s flow is similar, indicating balanced interest. ATR at 2.48 suggests modest daily swings. OBV and MFI at 66.76 lean constructive. If momentum cools, the middle Bollinger near C$180.43 may act as a reference zone. Breakouts above C$186 could target the 52 week high at C$185.99.
Valuation analysis quick check
BMO stock screens at P/E 15.14, P/B 1.49, P/S 1.70, and P/FCF 15.68. Earnings yield is 6.63 percent, while the dividend yield is about 3.50 percent. Price is close to the Graham number at CA$184.15. Together, these point to fairly balanced pricing on public comps, even as some models argue for a larger intrinsic value.
Clear earnings execution, steady provisions, and expense control can narrow any value gap. A confident outlook on capital, plus clarity on the Bank of Canada path, would also help. Cautious optimism in recent commentary reflects this mix source. For BMO stock, catalysts need to meet conservative expectations to re-rate meaningfully.
Final Thoughts
Here is the bottom line for Canadian investors. BMO stock carries a bullish intrinsic value signal but trades at near-fair multiples on earnings and book. The path from here likely hinges on two items. First, the rate backdrop and its net effect on margins and credit. Second, clean execution on provisions, fees, and costs on February 24. Technically, the tape is firm but a bit warm, so pullbacks toward the C$180 area could appear. We would track net interest income, provision trends, and capital returns as key drivers. Position sizing and timelines matter. This is information, not advice. Always do your own research.
FAQs
Is BMO stock undervalued today?
Some models estimate intrinsic value near CA$261.85, which suggests upside. On public comps, BMO stock trades around 16x earnings and 1.49x book, which looks closer to fair value. The gap may close if earnings quality improves and credit costs remain stable. Always compare models and multiples.
How do rate cut expectations affect Bank of Montreal?
Rate cuts can support loan growth and securities valuations, but they may pressure net interest margins. If credit costs stay contained, lower rates can still be a net positive. For BMO stock, the mix of margin trends, deposit pricing, and provisions will determine whether earnings expand or stay steady.
What are the key levels to watch on the chart?
Price is near the upper Bollinger Band around C$185.85, with a middle band near C$180.43 and the 50 day moving average near C$176.67. RSI at 63.53 signals firm momentum. For BMO stock, holding above C$180 would keep the short-term bias constructive, while strong closes above C$186 open room higher.
When is the next earnings date and what should I track?
Bank of Montreal reports on February 24, 2026. Watch net interest income, fee income, expense control, and provisions for credit losses. For BMO stock, guidance on capital, buybacks, and credit quality will be key. Compare results to recent trends and peer updates to judge any re-rating potential.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
