Bank of America (BVC:BAC) Stock Valuation, Peer Comparison & Price Targets

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 (COP203000) is trading above our estimate of [[fair value]] (COP38217.53)

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 (COP203000) is trading above our estimate of fair value (COP38217.53)

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 Ratio	16.1x
Earnings	US$21.94b
Market Cap	US$353.41b

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	1.6x

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	8.9x
BCOLOMBIA Bancolombia	6.3x	3.4%	Col$37.0t
BHI BAC Holding International	4.5x	n/a	Col$13.2t
GRUPOAVAL Grupo Aval Acciones y Valores	13.1x	51.5%	Col$10.8t
BOGOTA Banco de Bogotá	11.8x	n/a	Col$9.7t
BAC Bank of America	16.1x	9.8%	Col$353.4b

Price-To-Earnings vs Peers: BAC is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BAC is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the South American Banks industry average (8.8x).

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	16.1x
Fair PE Ratio	11.2x

Price-To-Earnings vs Fair Ratio: BAC is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	Col$203,000.00	Col$209,610.49 +3.3%	10.1%	Col$249,996.30	Col$173,243.05	n/a	21
Nov ’25	Col$185,380.00	Col$203,834.71 +10.0%	7.9%	Col$233,973.80	Col$174,376.70	n/a	21
Oct ’25	Col$163,000.00	Col$190,601.34 +16.9%	7.4%	Col$218,946.00	Col$166,314.75	n/a	21
Sep ’25	Col$160,300.00	Col$185,112.84 +15.5%	7.3%	Col$211,213.60	Col$160,441.10	n/a	22
Aug ’25	Col$160,000.00	Col$185,698.73 +16.1%	7.9%	Col$212,305.60	Col$155,146.40	n/a	22
Jul ’25	Col$165,200.00	Col$169,027.59 +2.3%	6.8%	Col$190,495.20	Col$153,224.40	n/a	23
Jun ’25	Col$148,000.00	Col$155,544.25 +5.1%	6.8%	Col$177,569.20	Col$135,107.00	n/a	23
May ’25	Col$148,520.00	Col$156,861.22 +5.6%	6.9%	Col$180,044.00	Col$133,076.00	n/a	23
Apr ’25	Col$145,700.00	Col$147,151.14 +1.0%	9.1%	Col$177,707.20	Col$127,485.60	n/a	21
Mar ’25	Col$135,500.00	Col$148,969.63 +9.9%	10.1%	Col$198,075.00	Col$122,806.50	n/a	23
Feb ’25	Col$136,580.00	Col$146,847.18 +7.5%	11.0%	Col$195,820.00	Col$117,492.00	n/a	22
Jan ’25	Col$130,800.00	Col$135,185.02 +3.4%	14.0%	Col$194,450.00	Col$108,892.00	n/a	23
Dec ’24	Col$118,080.00	Col$134,405.35 +13.8%	15.6%	Col$204,617.10	Col$110,332.75	n/a	23
Nov ’24	Col$109,420.00	Col$142,930.98 +30.6%	15.0%	Col$208,215.70	Col$114,731.10	Col$185,380.00	22
Oct ’24	Col$110,750.00	Col$141,241.71 +27.5%	13.0%	Col$195,480.00	Col$111,993.75	Col$163,000.00	22
Sep ’24	Col$117,560.00	Col$141,927.94 +20.7%	13.9%	Col$198,312.80	Col$113,321.60	Col$160,300.00	22
Aug ’24	Col$125,160.00	Col$141,424.68 +13.0%	15.4%	Col$206,892.40	Col$111,403.60	Col$160,000.00	22
Jul ’24	Col$120,000.00	Col$147,235.90 +22.7%	16.1%	Col$204,207.50	Col$116,690.00	Col$165,200.00	22
Jun ’24	Col$122,600.00	Col$162,938.12 +32.9%	14.1%	Col$213,074.50	Col$126,938.00	Col$148,000.00	22
May ’24	Col$137,540.00	Col$164,194.75 +19.4%	13.6%	Col$213,027.50	Col$126,910.00	Col$148,520.00	23
Apr ’24	Col$131,480.00	Col$181,496.51 +38.0%	14.0%	Col$240,068.40	Col$129,267.60	Col$145,700.00	23
Mar ’24	Col$164,810.00	Col$199,878.24 +21.3%	13.5%	Col$260,966.70	Col$162,488.70	Col$135,500.00	23
Feb ’24	Col$164,030.00	Col$187,228.40 +14.1%	12.6%	Col$240,224.40	Col$152,450.10	Col$136,580.00	23
Jan ’24	Col$154,070.00	Col$196,823.26 +27.7%	11.9%	Col$248,149.20	Col$152,707.20	Col$130,800.00	24
Dec ’23	Col$174,250.00	Col$198,965.52 +14.2%	12.5%	Col$262,047.50	Col$152,464.00	Col$118,080.00	23
Nov ’23	Col$180,310.00	Col$203,481.84 +12.9%	12.2%	Col$271,529.50	Col$157,980.80	Col$109,420.00	23

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

Bank of America Valuation