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 13.28 is considered Fairly compared with the five-year average of 11.54. The fair price of Bank of America Corp (BAC) is between 44.97 to 57.44 according to relative valuation methord.
Relative Value
Fair Zone
44.97-57.44
Current Price：55.64
Fair
13.28
PE
1Y
3Y
5Y
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.
3.54
PS
Bank of America Corp. (BAC) has a current PS of 3.54. The 5-year average PS is 3.09. The thresholds are as follows: Strongly Undervalued below 1.97, Undervalued between 1.97 and 2.53, Fairly Valued between 3.65 and 2.53, Overvalued between 3.65 and 4.20, and Strongly Overvalued above 4.20. The current Forward PS of 3.54 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 1.47. Compared to its 3-year average P/B ratio of 1.12 , the current P/B ratio is approximately 31.15% higher. Relative to its 5-year average P/B ratio of 1.20, the current P/B ratio is about 23.16% 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 8.75%, the current FCF yield is approximately 71.94% lower. Relative to its 5-year average FCF yield of 4.85% , the current FCF yield is about 210.36% lower.
1.47
P/B
Median3y
1.12
Median5y
1.20
15.05
FCF Yield
Median3y
8.75
Median5y
4.85
Competitors Valuation Multiple
The average P/S ratio for BAC's competitors is 3.32, providing a benchmark for relative valuation. Bank of America Corp Corp (BAC) exhibits a P/S ratio of 3.54, which is 6.63% above the industry average. Given its robust revenue growth of 9.63%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BAC increased by 20.17% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 28.06 to 31.43.
The secondary factor is the Revenue Growth, contributed 9.63%to the performance.
Overall, the performance of BAC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Bank of America Corp (BAC) currently overvalued or undervalued?
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 11.54. The fair price of Bank of America Corp (BAC) is between 44.97 to 57.44 according to relative valuation methord.
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 44.97 to 57.44 according to relative valuation methord.
How does BAC's valuation metrics compare to the industry average?
The average P/S ratio for BAC's competitors is 3.32, providing a benchmark for relative valuation. Bank of America Corp Corp (BAC) exhibits a P/S ratio of 3.54, which is 6.63% above the industry average. Given its robust revenue growth of 9.63%, this premium appears unsustainable.
What is the current P/B ratio for Bank of America Corp (BAC) as of Jan 08 2026?
As of Jan 08 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 Jan 08 2026?
As of Jan 08 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 Jan 08 2026?
As of Jan 08 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 Jan 08 2026?
As of Jan 08 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.