NEW YORK ( Trefis ) -- JPMorgan ( JPM) is one of the leading global financial services company. The firm has an asset base of nearly $2 trillion and serves customers in more than 60 countries. Its main competitors include Bank of America ( BAC), Wells Fargo ( WFC), Goldman Sachs ( GS), Deutsche Bank ( DB) and Morgan Stanley ( MS).

JPMorgan recently received approval from Chinese regulators for a joint venture that will allow it to underwrite stocks and bonds in mainland China. JPMorgan could previously underwrite deals in Hong Kong, but the approval now allows access to mainland China where some of its competitors like UBS ( UBS) and Goldman Sachs already offer clients the opportunity to raise capital. JPMorgan will have a 33% stake in the joint venture with Shenzhen-based First Capital Securities Co.

Investment banking accounts for almost 6% of the $48 Trefis price estimate for JPMorgan's stock. Our price estimate stands about 8% above the current market price.

JPMorgan derives most of its revenues from its retail banking operations in the U.S. -- only 20% of its revenues come from outside of the U.S., substantially lower than competitor Citigroup ( C) which generates more than 50% of its revenue abroad. The recent joint venture approval will aid JPMorgan's initiative to increase its foothold in Asia, where the firm already maintains partnerships including its JV with China International Fund Management Co. Asia-Pacific represents 14% of JPMorgan's global institutional business, but the firm is reportedly targeting a pickup toward 20%.

Strong Investment Banking Performance in 2010

JPMorgan offers a full range of investment banking services to its clients and emerged as the top investment bank in 2010, with investment banking revenues of $5.2 billion and a market share of nearly 8%. Roughly 52% of total investment banking industry revenues came from the American region, where JPMorgan maintains a strong presence. JPMorgan also ranked second in the Asian-Pacific region according to Dealogic (as quoted by the Wall Street Journal).

With the growing presence in China, JPMorgan will look to increase its share in the global equity underwriting market. We currently estimate that JPMorgan's market share will remain stable at 8% during our forecast period. However, given the company's efforts to capture share of the growing Chinese market, there could be upside to our forecasts and $48 price estimate for JPMorgan stock. We note that our price estimate already implies a roughly 8% premium to market price.

To see the impact of various trends in JPMorgan's equity underwriting market share on its stock value, drag the trend line in the modifiable chart above.

You can see the complete $48 Trefis Price estimate for JPMorgan's stock here.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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