BAC Valuation

Bank of America Corp

Add to Watchlist

Advanced Chart

50.740

+0.25(0.495%)1D

Overview
Forecast
Valuation
Earnings

BAC Relative Valuation

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. If the market price exceeds this fair value range, BAC is overvalued; if below, it's undervalued.

Historical Valuation

Bank of America Corp (BAC) is now in the Fair zone, suggesting that its current forward PE ratio of 12.79 is considered Fairly compared with the five-year average of 11.42. The fair price of Bank of America Corp (BAC) is between 41.04 to 53.00 according to relative valuation methord.

Relative Value

Fair Zone

41.04-53.00

Current Price：50.49

Fair

12.85

Trailing

Forward

0.00

EV/EBITDA

Bank of America Corp. (BAC) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

NaN

EV/EBIT

Bank of America Corp. (BAC) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

3.35

Bank of America Corp. (BAC) has a current PS of 3.35. The 5-year average PS is 3.04. The thresholds are as follows: Strongly Undervalued below 1.91, Undervalued between 1.91 and 2.47, Fairly Valued between 3.60 and 2.47, Overvalued between 3.60 and 4.17, and Strongly Overvalued above 4.17. The current Forward PS of 3.35 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Bank of America Corp. (BAC) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

Bank of America Corp. (BAC) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Bank of America Corp (BAC) has a current Price-to-Book (P/B) ratio of 1.36. Compared to its 3-year average P/B ratio of 1.09 , the current P/B ratio is approximately 24.21% higher. Relative to its 5-year average P/B ratio of 1.17, the current P/B ratio is about 16.72% higher. Bank of America Corp (BAC) has a Forward Free Cash Flow (FCF) yield of approximately -6.08%. Compared to its 3-year average FCF yield of 7.74%, the current FCF yield is approximately -178.54% lower. Relative to its 5-year average FCF yield of 5.64% , the current FCF yield is about -207.68% lower.

1.37

P/B

Median3y

1.09

Median5y

1.17

-6.06

FCF Yield

Median3y

7.74

Median5y

5.64

Competitors Valuation Multiple

The average P/S ratio for BAC's competitors is 2.99, providing a benchmark for relative valuation. Bank of America Corp Corp (BAC) exhibits a P/S ratio of 3.35, which is 12.17% above the industry average. Given its robust revenue growth of 5.23%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Itau Unibanco Holding SA

Toronto-Dominion Bank

Performance Decomposition

Market capitalization of BAC increased by 26.02% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.13 to 14.89.

The secondary factor is the Revenue Growth, contributed 5.23%to the performance.

Overall, the performance of BAC in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.23%

24.21B → 25.47B

Revenue Growth

-1.93%

28.49 → 27.94

Margin Expansion

22.72%

12.13 → 14.89

P/E Change

26.02%