JPM reported another nice quarter this morning and the stock is now trading back near 52 week highs. The banking industry in general has had very strong stock performance over the last six months, but especially for the "darling" banks (JPM, WFC, et al.) valuation is starting to approach historical averages. Below is the long term history of JPM's price to tangible book ratio. Buyers here need to believe that the multiple can continue to expand back to levels reached in the late 90s (or be comfortable with book value growth driving returns).