Based on the provided data and context, I'll analyze whether BAC is overvalued through multiple key aspects:
Valuation Metrics
BAC's current P/E ratio of 13.68x (Q4 2024) is notably lower than the banking sector average, suggesting relatively attractive valuation. The EV/EBITDA of 24.91x indicates some premium compared to peers, while P/B ratio of 1.23x is reasonable for a major bank.
Recent Performance
The stock is trading at $46.57 as of January 17, 2025, showing resilience despite recent market volatility. The bank reported strong financial performance in 2024, with revenue exceeding $100 billion and profits reaching $27.1 billion.
Business Fundamentals
BAC demonstrated robust operational strength by announcing stock awards to 97% of its global workforce, reflecting strong financial health. The bank's bonus pool for investment bankers is expected to rise 10%, indicating healthy business momentum.
Market Position
As the second-largest U.S. lender, BAC maintains a strong competitive position. Recent analyst ratings show high confidence, with BAC receiving a top rating from Validea's Multi-Factor Investor model.
Conclusion
BAC is not overvalued at current levels based on fundamentals, valuation metrics, and market position. The bank's strong financial performance, reasonable P/E ratio, and positive business momentum support this conclusion.