Bank of America Corporation

SNSE:BAC Stock Report

Market Cap: US$332.8b

Bank of America Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 ($44.83) is trading above our estimate of fair value ($40.33)

Significantly Below Fair Value: BAC is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As BAC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BAC. This is calculated by dividing BAC's market cap by their current earnings.
What is BAC's PE Ratio?
PE Ratio15.2x
EarningsUS$21.94b
Market CapUS$332.85b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.4x
CHILE Banco de Chile
8x-3.8%CL$11.4t
BSANTANDER Banco Santander-Chile
11.8x9.1%CL$8.9t
BCI Banco de Crédito e Inversiones
7.7x7.3%CL$6.2t
SCOTIABKCL Scotiabank Chile
6.2xn/aCL$2.8t
BAC Bank of America
15.2x9.9%US$332.8b

Price-To-Earnings vs Peers: BAC is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BAC 15.2xIndustry Avg. 8.1xNo. of Companies10PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BAC is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the South American Banks industry average (8.1x).

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 Ratio15.2x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: BAC is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).

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 BAC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$44.83
US$49.13
+9.6%
10.9%US$57.00US$39.50n/a21
Dec ’25US$44.83
US$47.79
+6.6%
10.1%US$57.00US$39.50n/a21
Nov ’25US$39.31
US$46.17
+17.5%
7.9%US$53.00US$39.50n/a21
Oct ’25US$39.31
US$45.27
+15.2%
7.4%US$52.00US$39.50n/a21
Sep ’25US$39.75
US$45.57
+14.7%
7.3%US$52.00US$39.50n/a22
Aug ’25US$39.75
US$45.48
+14.4%
7.9%US$52.00US$38.00n/a22
Jul ’25US$39.75
US$40.82
+2.7%
6.8%US$46.00US$37.00n/a23
Jun ’25US$36.86
US$40.29
+9.3%
6.8%US$46.00US$35.00n/a23
May ’25US$36.86
US$40.08
+8.7%
6.9%US$46.00US$34.00n/a23
Apr ’25US$36.96
US$38.09
+3.1%
9.1%US$46.00US$33.00n/a21
Mar ’25US$32.57
US$37.60
+15.5%
10.1%US$50.00US$31.00n/a23
Feb ’25US$32.57
US$37.50
+15.1%
11.0%US$50.00US$30.00n/a22
Jan ’25US$33.45
US$34.76
+3.9%
14.0%US$50.00US$28.00n/a23
Dec ’24US$25.66
US$33.50
+30.6%
15.6%US$51.00US$27.50US$44.8323
Nov ’24US$25.66
US$33.64
+31.1%
15.0%US$49.00US$27.00US$39.3122
Oct ’24US$32.70
US$34.68
+6.1%
13.0%US$48.00US$27.50US$39.3122
Sep ’24US$32.70
US$35.07
+7.2%
13.9%US$49.00US$28.00US$39.7522
Aug ’24US$32.70
US$35.55
+8.7%
15.4%US$52.00US$28.00US$39.7522
Jul ’24US$28.82
US$35.33
+22.6%
16.1%US$49.00US$28.00US$39.7522
Jun ’24US$27.42
US$35.94
+31.1%
14.1%US$47.00US$28.00US$36.8622
May ’24US$29.77
US$36.23
+21.7%
13.6%US$47.00US$28.00US$36.8623
Apr ’24US$28.43
US$39.31
+38.3%
14.0%US$52.00US$28.00US$36.9623
Mar ’24US$36.67
US$40.59
+10.7%
13.5%US$53.00US$33.00US$32.5723
Feb ’24US$36.67
US$40.53
+10.5%
12.6%US$52.00US$33.00US$32.5723
Jan ’24US$36.67
US$41.24
+12.5%
11.9%US$52.00US$32.00US$33.4524
Dec ’23US$36.67
US$41.76
+13.9%
12.5%US$55.00US$32.00US$25.6623

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 11:02
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Bank of America Corporation is covered by 62 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
David GeorgeBaird
Jason GoldbergBarclays