Bank of America Corporation

WBAG:BOAC Stock Report

Market Cap: €277.5b

Bank of America Valuation

Is BOAC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BOAC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BOAC (€36.24) is trading below our estimate of fair value (€53.04)

Significantly Below Fair Value: BOAC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BOAC?

Other financial metrics that can be useful for relative valuation.

BOAC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does BOAC's PE Ratio compare to its peers?

The above table shows the PE ratio for BOAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.7x
EBS Erste Group Bank
6.5x-2.4%€19.8b
BG BAWAG Group
7.6x-0.1%€5.2b
RBI Raiffeisen Bank International
2.4x-9.9%€5.7b
OBS Oberbank
14xn/a€5.0b
BOAC Bank of America
13.6x7.9%€304.6b

Price-To-Earnings vs Peers: BOAC is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (7.7x).


Price to Earnings Ratio vs Industry

How does BOAC's PE Ratio compare vs other companies in the European Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BOAC is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the European Banks industry average (7.4x).


Price to Earnings Ratio vs Fair Ratio

What is BOAC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BOAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio7.8x

Price-To-Earnings vs Fair Ratio: BOAC is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (7.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BOAC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€36.24
€41.00
+13.2%
7.6%€47.15€35.81n/a21
Sep ’25€36.40
€41.71
+14.6%
7.3%€47.59€36.15n/a22
Aug ’25€36.65
€42.07
+14.8%
7.9%€48.10€35.15n/a22
Jul ’25€37.18
€38.01
+2.3%
6.8%€42.84€34.46n/a23
Jun ’25€36.29
€37.21
+2.5%
6.8%€42.48€32.32n/a23
May ’25€35.07
€37.48
+6.9%
6.9%€43.02€31.80n/a23
Apr ’25€34.94
€35.46
+1.5%
9.1%€42.83€30.72n/a21
Mar ’25€31.74
€34.75
+9.5%
10.1%€46.21€28.65n/a23
Feb ’25€30.58
€34.58
+13.1%
11.0%€46.12€27.67n/a22
Jan ’25€30.70
€31.41
+2.3%
14.0%€45.18€25.30n/a23
Dec ’24€28.14
€30.78
+9.4%
15.6%€46.86€25.27n/a23
Nov ’24€24.96
€31.78
+27.3%
15.0%€46.29€25.51n/a22
Oct ’24€26.20
€32.82
+25.3%
13.0%€45.42€26.02€35.6122
Sep ’24€26.80
€32.55
+21.5%
13.9%€45.49€25.99€36.4022
Aug ’24€28.70
€31.94
+11.3%
15.4%€46.72€25.16€36.6522
Jul ’24€26.32
€32.23
+22.4%
16.1%€44.70€25.54€37.1822
Jun ’24€25.92
€33.37
+28.7%
14.1%€43.63€26.00€36.2922
May ’24€26.56
€33.07
+24.5%
13.6%€42.90€25.56€35.0723
Apr ’24€26.22
€36.27
+38.3%
14.0%€47.97€25.83€34.9423
Mar ’24€32.02
€38.03
+18.8%
13.5%€49.66€30.92€31.7423
Feb ’24€32.89
€36.89
+12.2%
12.6%€47.34€30.04€30.5823
Jan ’24€30.94
€38.88
+25.7%
11.9%€49.02€30.16€30.7024
Dec ’23€34.87
€39.67
+13.8%
12.5%€52.25€30.40€28.1423
Nov ’23€36.73
€41.72
+13.6%
12.2%€55.67€32.39€24.9623
Oct ’23€31.67
€42.04
+32.7%
11.2%€54.95€33.97€26.2023

Analyst Forecast: Target price is less than 20% higher than the current share price.


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