BAC PE Ratio & Valuation, Is BAC Overvalued

Historical Valuation

Bank of America Corp (BAC) is now in the Fair zone, suggesting that its current forward PE ratio of 13.28 is considered Fairly compared with the five-year average of 11.61. The fair price of Bank of America Corp (BAC) is between 38.63 to 49.33 according to relative valuation method.

Relative Value

Fair Zone

38.63-49.33

Current Price：47.90

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Bank of America Corp (BAC) has a current Price-to-Book (P/B) ratio of 1.47. Compared to its 3-year average P/B ratio of 1.12, the current P/B ratio is approximately 31.19% higher. Relative to its 5-year average P/B ratio of 1.20, the current P/B ratio is about 23.05% higher. Bank of America Corp (BAC) has a Forward Free Cash Flow (FCF) yield of approximately 15.05%. Compared to its 3-year average FCF yield of 9.43%, the current FCF yield is approximately 59.55% lower. Relative to its 5-year average FCF yield of 4.56%, the current FCF yield is about 229.65% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for BAC competitors is 3.58, providing a benchmark for relative valuation. Bank of America Corp Corp (BAC.N) exhibits a P/S ratio of 3.54, which is -1.05% above the industry average. Given its robust revenue growth of 6.41%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of BAC increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of BAC in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is BAC currently overvalued or undervalued?

What is Bank of America Corp (BAC) fair value?

BAC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Bank of America Corp (BAC) is between 38.63 to 49.33 according to relative valuation method.

How does BAC's valuation metrics compare to the industry average?

The average P/S ratio for BAC's competitors is 3.58, providing a benchmark for relative valuation. Bank of America Corp Corp (BAC) exhibits a P/S ratio of 3.54, which is -1.05% above the industry average. Given its robust revenue growth of 6.41%, this premium appears unsustainable.

What is the current P/B ratio for Bank of America Corp (BAC) as of Mar 10 2026?

As of Mar 10 2026, Bank of America Corp (BAC) has a P/B ratio of 1.47. This indicates that the market values BAC at 1.47 times its book value.

What is the current FCF Yield for Bank of America Corp (BAC) as of Mar 10 2026?

As of Mar 10 2026, Bank of America Corp (BAC) has a FCF Yield of 15.05%. This means that for every dollar of Bank of America Corp's market capitalization, the company generates 15.05 cents in free cash flow.

What is the current Forward P/E ratio for Bank of America Corp (BAC) as of Mar 10 2026?

As of Mar 10 2026, Bank of America Corp (BAC) has a Forward P/E ratio of 13.28. This means the market is willing to pay $13.28 for every dollar of Bank of America Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Bank of America Corp (BAC) as of Mar 10 2026?

As of Mar 10 2026, Bank of America Corp (BAC) has a Forward P/S ratio of 3.54. This means the market is valuing BAC at $3.54 for every dollar of expected revenue over the next 12 months.

BAC Valuation