Bank of America Valuation

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

BAC (CHF28.5) is trading below our estimate of [[fair value]] (CHF47.09)

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

Valuation Score

3/6

Valuation Score 3/6

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 BAC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BAC (CHF28.5) is trading below our estimate of fair value (CHF47.09)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BAC. This is calculated by dividing BAC's market cap by their current preferred multiple.
What is BAC's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$305.73b

BAC 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	6.7x
LLBN Liechtensteinische Landesbank	13.1x	n/a	CHF 2.2b
1398 Industrial and Commercial Bank of China	4.5x	4.3%	HK$2.3t
1288 Agricultural Bank of China	4.7x	5.8%	HK$1.8t
3988 Bank of China	4.7x	5.3%	HK$1.5t
BAC Bank of America	13.4x	8.0%	CHF 305.7b

Price-To-Earnings vs Peers: BAC is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (6.7x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	0.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	0.4%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: BAC is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the European Banks industry average (7.5x).

Price to Earnings Ratio vs Fair Ratio

What is BAC'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.

BAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.4x
Fair PE Ratio	17.5x

Price-To-Earnings vs Fair Ratio: BAC is good value based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.