Bank of America
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. The last earnings update was 209 days ago. More info.
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BAC Share Price and Events
Price Volatility
Related Companies
BAC Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Bank of America
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of America.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 16 analysts.
= Stable Book Value * Return on Equity = $26.33 * 1108.2% |
$2.92 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 16 analysts. | $26.33 |
| Discount Rate (Cost of Equity) | See below | 11.1% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.61 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.614 (1 + (1- 21%) (165.63%)) |
1.15 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.15 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.15 * 7.05%) |
11.06% |
Discounted Cash Flow Calculation for NYSE:BAC using Excess Returns Model Model
The calculations below outline how an intrinsic value for Bank of America is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (1108.2% – 11.06%) * $26.33) |
$0.01 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $0.01 / (11.06% - 2.95%) |
$0.08 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $26.33 + $0.08 |
$26.41 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $26.41 |
| Current discount | Discount to share price of
$31.00
= -1 x ($31.00 - $26.41) / $26.41 |
-17.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Bank of America is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Bank of America's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Bank of America's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-06-30) in USD | $1.94 |
| NYSE:BAC Share Price ** | NYSE (2018-09-19) in USD | $31 |
| United States of America Banks Industry PE Ratio | Median Figure of 589 Publicly-Listed Banks Companies | 18x |
| United States of America Market PE Ratio | Median Figure of 3,050 Publicly-Listed Companies | 20.12x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Bank of America.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:BAC Share Price ÷ EPS (both in USD) = 31 ÷ 1.94 |
15.96x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of America is good value based on earnings compared to the US Banks industry average.
- Bank of America is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Bank of America's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 15.96x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts |
7.6%per year |
| United States of America Banks Industry PEG Ratio | Median Figure of 259 Publicly-Listed Banks Companies | 1.18x |
| United States of America Market PEG Ratio | Median Figure of 2,048 Publicly-Listed Companies | 1.38x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 15.96x ÷ 7.6% |
2.11x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of America is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Bank of America's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-06-30) in USD | $24.07 |
| NYSE:BAC Share Price * | NYSE (2018-09-19) in USD | $31 |
| United States of America Banks Industry PB Ratio | Median Figure of 602 Publicly-Listed Banks Companies | 1.44x |
| United States of America Market PB Ratio | Median Figure of 5,247 Publicly-Listed Companies | 2.01x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:BAC Share Price ÷ Book Value per Share (both in USD) = 31 ÷ 24.07 |
1.29x |
* Primary Listing of Bank of America.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of America is good value based on assets compared to the US Banks industry average.
Value checks
We assess Bank of America's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) Bank of America has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
BAC Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Bank of America's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Bank of America's earnings growth is positive but not above the United States of America market average.
- Bank of America's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:BAC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts | 7.6% |
| NYSE:BAC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts | 4.5% |
| United States of America Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 8.7% |
| United States of America Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 4.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 16.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 99,595 | 29,384 | 8 | |
| 2019-12-31 | 95,849 | 27,801 | 13 | |
| 2018-12-31 | 91,887 | 25,976 | 13 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-06-30 | 84,513 | 47,579 | 19,994 |
| 2018-03-31 | 84,834 | 63,746 | 18,273 |
| 2017-12-31 | 83,956 | 10,403 | 16,618 |
| 2017-09-30 | 83,737 | 8,775 | 18,953 |
| 2017-06-30 | 83,517 | -11,170 | 18,283 |
| 2017-03-31 | 81,724 | -5,525 | 17,960 |
| 2016-12-31 | 80,104 | 18,361 | 16,140 |
| 2016-09-30 | 79,660 | 32,355 | 14,843 |
| 2016-06-30 | 79,061 | 57,625 | 14,569 |
| 2016-03-31 | 79,448 | 38,999 | 14,653 |
| 2015-12-31 | 79,804 | 28,397 | 14,427 |
| 2015-09-30 | 81,185 | 23,057 | 14,824 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
All data from Bank of America Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 3.31 | 3.71 | 3.10 | 11.00 |
| 2019-12-31 | 2.91 | 3.14 | 2.80 | 21.00 |
| 2018-12-31 | 2.54 | 2.62 | 2.47 | 22.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-06-30 | 1.94 |
| 2018-03-31 | 1.78 |
| 2017-12-31 | 1.63 |
| 2017-09-30 | 1.87 |
| 2017-06-30 | 1.80 |
| 2017-03-31 | 1.76 |
| 2016-12-31 | 1.57 |
| 2016-09-30 | 1.44 |
| 2016-06-30 | 1.41 |
| 2016-03-31 | 1.41 |
| 2015-12-31 | 1.38 |
| 2015-09-30 | 1.41 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Bank of America's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Bank of America has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
BAC Past Performance
How has Bank of America performed over the past 5 years?
- Bank of America's last earnings update was 209 days ago.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Bank of America has delivered over 20% year on year earnings growth in the past 5 years.
- Bank of America's 1-year earnings growth is less than its 5-year average (9.4% vs 24.8%)
- Bank of America's earnings growth has not exceeded the US Banks industry average in the past year (9.4% vs 12.2%).
Earnings and Revenue History
All data from Bank of America Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-06-30 | 84,513.00 | 19,994.00 | 44,577.00 | |
| 2018-03-31 | 84,834.00 | 18,273.00 | 44,784.00 | |
| 2017-12-31 | 83,956.00 | 16,618.00 | 44,815.00 | |
| 2017-09-30 | 83,737.00 | 18,953.00 | 44,659.00 | |
| 2017-06-30 | 83,517.00 | 18,283.00 | 44,849.00 | |
| 2017-03-31 | 81,724.00 | 17,960.00 | 44,505.00 | |
| 2016-12-31 | 80,104.00 | 16,140.00 | 45,017.00 | |
| 2016-09-30 | 79,660.00 | 14,843.00 | 45,459.00 | |
| 2016-06-30 | 79,061.00 | 14,569.00 | 45,902.00 | |
| 2016-03-31 | 79,448.00 | 14,653.00 | 46,174.00 | |
| 2015-12-31 | 79,804.00 | 14,427.00 | 46,896.00 | |
| 2015-09-30 | 81,185.00 | 14,824.00 | 47,163.00 | |
| 2015-06-30 | 81,572.00 | 10,176.00 | 47,493.00 | |
| 2015-03-31 | 80,564.00 | 7,018.00 | 48,300.00 | |
| 2014-12-31 | 83,619.00 | 4,476.00 | 48,876.00 | |
| 2014-09-30 | 84,618.00 | 4,234.00 | 49,539.00 | |
| 2014-06-30 | 85,279.00 | 6,921.00 | 50,127.00 | |
| 2014-03-31 | 85,459.00 | 8,456.00 | 50,540.00 | |
| 2013-12-31 | 83,946.00 | 9,188.00 | 50,821.00 | |
| 2013-09-30 | 79,090.00 | 7,264.00 | 51,404.00 | |
| 2013-06-30 | 76,510.00 | 5,014.00 | 51,625.00 | |
| 2013-03-31 | 75,189.00 | 3,541.00 | 52,004.00 | |
| 2012-12-31 | 73,565.00 | 2,758.00 | 52,555.00 | |
| 2012-09-30 | 79,463.00 | 3,975.00 | 52,917.00 | |
| 2012-06-30 | 85,855.00 | 9,867.00 | 53,551.00 | |
| 2012-03-31 | 75,641.00 | -1,327.00 | 54,048.00 | |
| 2011-12-31 | 78,844.00 | 84.00 | 53,842.00 | |
| 2011-09-30 | 75,359.00 | -3,066.00 | 53,810.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Bank of America has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Bank of America used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
- Bank of America has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Bank of America's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Bank of America has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
BAC Health
This company is a bank or financial institution.Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Balance sheet
Assets
Liabilities and shares
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Bank of America Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-06-30 | 264,216.00 | 499,788.00 | 532,582.00 |
| 2018-03-31 | 266,224.00 | 502,805.00 | 579,080.00 |
| 2017-12-31 | 267,146.00 | 493,944.00 | 522,180.00 |
| 2017-09-30 | 272,459.00 | 505,174.00 | 528,333.00 |
| 2017-06-30 | 270,987.00 | 508,834.00 | 524,303.00 |
| 2017-03-31 | 268,153.00 | 488,073.00 | 520,789.00 |
| 2016-12-31 | 266,195.00 | 464,986.00 | 472,487.00 |
| 2016-09-30 | 270,083.00 | 473,704.00 | 503,457.00 |
| 2016-06-30 | 267,069.00 | 488,291.00 | 520,250.00 |
| 2016-03-31 | 262,776.00 | 493,753.00 | 529,308.00 |
| 2015-12-31 | 256,176.00 | 477,603.00 | 478,320.00 |
| 2015-09-30 | 255,905.00 | 516,906.00 | 508,156.00 |
| 2015-06-30 | 251,659.00 | 539,924.00 | 494,719.00 |
| 2015-03-31 | 250,188.00 | 527,120.00 | 513,562.00 |
| 2014-12-31 | 243,476.00 | 522,497.00 | 471,769.00 |
| 2014-09-30 | 238,681.00 | 545,553.00 | 496,823.00 |
| 2014-06-30 | 237,411.00 | 559,420.00 | 524,395.00 |
| 2014-03-31 | 231,888.00 | 546,213.00 | 518,457.00 |
| 2013-12-31 | 232,685.00 | 531,186.00 | 469,861.00 |
| 2013-09-30 | 232,282.00 | 566,942.00 | 495,004.00 |
| 2013-06-30 | 231,032.00 | 590,091.00 | 489,897.00 |
| 2013-03-31 | 237,293.00 | 617,763.00 | 502,255.00 |
| 2012-12-31 | 236,956.00 | 645,591.00 | 514,821.00 |
| 2012-09-30 | 238,606.00 | 647,094.00 | 625,354.00 |
| 2012-06-30 | 235,975.00 | 678,296.00 | 636,847.00 |
| 2012-03-31 | 232,499.00 | 701,829.00 | 543,338.00 |
| 2011-12-31 | 230,101.00 | 682,347.00 | 519,501.00 |
| 2011-09-30 | 230,252.00 | 740,254.00 | 606,635.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- Bank of America has an acceptable proportion of non-loan assets held.
- Bank of America's liabilities are made up of primarily low risk sources of funding.
- Loans at Bank of America are broadly funded by customer deposits.
- Bank of America's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
- Bank of America has a sufficient allowance for bad loans.
- Bank of America has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess Bank of America's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Bank of America has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
BAC Dividends
What is Bank of America's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Bank of America
shares you are expected to receive
$39
in your first year as a dividend.
Dividend Amount
- Bank of America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.26%).
- Bank of America's dividend is below the markets top 25% of dividend payers in United States of America (3.25%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| United States of America Banks Industry Average Dividend Yield | Market Cap Weighted Average of 463 Stocks | 2.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1974 Stocks | 2.3% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.7% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.3% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | 0.85 | 15.00 |
| 2019-12-31 | 0.68 | 22.00 |
| 2018-12-31 | 0.54 | 22.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-07-26 | 0.600 | 1.938 |
| 2018-04-26 | 0.480 | 1.619 |
| 2018-02-01 | 0.480 | 1.548 |
| 2017-10-25 | 0.480 | 1.656 |
| 2017-07-26 | 0.480 | 1.939 |
| 2017-07-18 | 0.300 | 1.248 |
| 2017-05-02 | 0.300 | 1.272 |
| 2017-04-18 | 0.300 | 1.285 |
| 2017-02-23 | 0.300 | 1.250 |
| 2017-01-13 | 0.300 | 1.287 |
| 2016-06-29 | 0.300 | 1.782 |
| 2016-01-21 | 0.200 | 1.473 |
| 2015-10-22 | 0.200 | 1.196 |
| 2015-07-23 | 0.200 | 1.219 |
| 2015-04-17 | 0.200 | 1.191 |
| 2015-02-10 | 0.200 | 1.257 |
| 2014-10-23 | 0.200 | 1.188 |
| 2014-08-06 | 0.200 | 1.228 |
| 2014-06-18 | 0.040 | 0.258 |
| 2014-05-01 | 0.200 | 1.324 |
| 2014-04-16 | 0.200 | 1.268 |
| 2014-02-11 | 0.040 | 0.238 |
| 2013-10-24 | 0.040 | 0.256 |
| 2013-07-24 | 0.040 | 0.278 |
| 2013-04-30 | 0.040 | 0.301 |
| 2013-01-23 | 0.040 | 0.335 |
| 2012-10-24 | 0.040 | 0.384 |
| 2012-07-11 | 0.040 | 0.482 |
| 2012-04-11 | 0.040 | 0.516 |
| 2012-01-11 | 0.040 | 0.492 |
| 2011-11-18 | 0.040 | 0.719 |
| 2011-08-22 | 0.040 | 0.607 |
| 2011-05-11 | 0.040 | 0.405 |
| 2011-01-26 | 0.040 | 0.295 |
| 2010-10-25 | 0.040 | 0.318 |
| 2010-07-28 | 0.040 | 0.304 |
| 2010-04-28 | 0.040 | 0.259 |
| 2010-01-27 | 0.040 | 0.238 |
| 2009-10-28 | 0.040 | 0.256 |
| 2009-07-21 | 0.040 | 0.245 |
| 2009-04-29 | 0.040 | 0.337 |
| 2009-01-16 | 0.040 | 0.673 |
| 2008-10-06 | 1.280 | 8.053 |
| 2008-09-22 | 2.560 | 7.477 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have fallen over the past 10 years.
Income/ dividend checks
We assess Bank of America's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Bank of America afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Bank of America has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
BAC Management
CEO
| COMPENSATION | $21,779,832 |
| AGE | 59 |
| TENURE AS CEO | 8.7 years |
CEO Bio
Mr. Brian T. Moynihan has been the Chief Executive Officer and Director of Bank of America Corporation since January 01, 2010 and has been its Chairman since October 01, 2014. Mr. Moynihan had been the President of Bank of America Corporation since January 01, 2010 until 2018. He serves as the General Partner of Bofa Merrill Lynch Preferred Capital Trust III, BofA Merrill Lynch Preferred Capital Trust IV, BofA Merrill Lynch Preferred Funding IV LP, BofA Merrill Lynch Preferred Funding III LP, BofA Merrill Preferred Capital Trust V and BofA Merrill Lynch Preferred Funding V LP. He served as the President of Global Banking & Wealth Management of Bank of America Corporation since January 2010. His direct support of diversity and inclusion initiatives across Bank of America is instrumental in creating an inclusive work environment. Mr. Moynihan served as the Chief Executive Officer of Merrill Lynch & Co., Inc. He served as the Director of Operation at Qualsec since September 2008. Mr. Moynihan served as the President at Global Wealth & Investment Management at Banc of America Investment Services, Inc. He served as the President at Fleet National Bank. Mr. Moynihan served as General Counsel at Bank of America Corporation from December 2008 to January 2010 and also as its Head of Consumer Banking from August 2009 to January 2010. He served as the President of Global Wealth and Investment Management at Bank of America Corporation from April 2004 to October 2007. Mr. Moynihan served as the President of Global Banking, Global Wealth & Investment Management at Bank of America Corporation since January 2009 and served as its President of Global Corporate and Investment Banking from October 2007 to October 2, 2008 and President of Private Equity & Global Operations from October 2, 2008 to January 2009. He managed Bank of America Corporation's third-party, nonproprietary and open architecture investment product platforms. Mr. Moynihan joined Bank of America in 2004. He served as an Executive Vice President of Wealth Management and Brokerage at FleetBoston Financial Corporation from 2000 to April 2004. Mr. Moynihan served as the Managing Director of Corporate Strategy and Development at FleetBoston Financial Corp. since 1994 and its Senior Vice President since 1998. He served as Fleet's eCatalyst from 2000 to 2001 and was responsible for driving the development and implementation of Fleet's Internet strategy. His responsibilities included oversight of all mergers & acquisitions, including the merger of Fleet Financial Group and BankBoston Corporation and Fleet's earlier acquisitions of Quick & Reilly, Columbia Management, Shawmut National Corporation, NatWest Bank's US Operations, Sanwa Business Credit and others. Mr. Moynihan joined Fleet Financial Group in April 1993 as the Deputy General Counsel. He serves as the Chairman and a Director of Boy's And Girl's Clubs of Boston Inc. He served as the Chairman of the Crossroads Rhode Island and Providence Haitian Project Inc. He served as the Chairman of the Board and Director at Merrill Lynch & Co., Inc. Mr. Moynihan serves as a Director of Bank of America N.A., United Way of Mass Bay (also known as United Way of Massachusetts Bay Inc.), YouthBuild Boston Inc., and FIA Card Services, N.A. In 2010, Mr. Moynihan was elected as a Trustee of the Corporation of Brown University. He served as a Director of BlackRock Inc. since February 2009. Mr. Moynihan has been chairing Bank of America's Global Diversity and Inclusion Council since 2007 and is an Executive Champion of its Disabilities Affinity Group for Bank of America associates. He holds BA from Brown University in 1981 and JD from University of Notre Dame Law School in 1984. Mr. Moynihan has a B.Ph. and an M.A. from Miami University.
CEO Compensation
- Brian's compensation has increased by more than 20% in the past year.
- Brian's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure
Average tenure and age of the Bank of America management team in years:
- The tenure for the Bank of America management team is about average.
Management Team
Brian Moynihan
Chairman & CEO
$22M
59
8.7 yrs
Paul Donofrio
Chief Financial Officer
$12M
58
3.1 yrs
Tom Montag
Chief Operating Officer
$18M
61
7 yrs
Terry Laughlin
Vice Chairman and Head of Global Wealth & Investment Management
$11M
63
8.1 yrs
Geoffrey Greener
Chief Risk Officer
$11M
53
4.4 yrs
Paul Mondragon
Market President
2.2 yrs
Karim Assef
Chairman of Global Investment Banking
1.7 yrs
Cathy Bessant
Chief Operations & Technology Officer
58
Rudolf Bless
Chief Accounting Officer
3.5 yrs
Christian Meissner
Head of Global Corporate and Investment Banking
6.7 yrs
Board of Directors Tenure
Average tenure and age of the Bank of America board of directors in years:
- The tenure for the Bank of America board of directors is about average.
Board of Directors
Brian Moynihan
Chairman & CEO
$22M
59
3.9 yrs
Tom May
Director
$320K
71
14.4 yrs
Frank Bramble
Director
$340K
70
12.7 yrs
Monica Lozano
Director
$320K
61
12.4 yrs
Sharon Allen
Director
$340K
66
6.1 yrs
Jack Bovender
Lead Independent Director
$450K
73
3.9 yrs
Susan Bies
Director
$428K
71
9.3 yrs
Linda Hudson
Director
$300K
68
6.1 yrs
R. Yost
Director
$300K
70
6.1 yrs
Arnold Donald
Director
$300K
63
5.7 yrs
Who owns this company?
Management checks
We assess Bank of America's management by checking for:- Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Bank of America has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
BAC News
External News
Simply Wall St News
Did Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?
Bank of America Corporation (NYSE:BAC) delivered an ROE of 7.44% over the past 12 months, which is relatively in-line with its industry average of 8.45% during the same period. … But what is more interesting is whether BAC can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of BAC's returns
Simply Wall St - – Full articleIs It Time To Buy Bank of America Corporation (NYSE:BAC) Based Off Its PE Ratio?
and want to better understand how you can grow your money by investing in Bank of America Corporation (NYSE:BAC). … Bank of America Corporation (NYSE:BAC) trades with a trailing P/E of 15.8x, which is lower than the industry average of 16.8x. … While BAC might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Simply Wall St - – Full articleIs Bank of America Corporation (NYSE:BAC) A Smart Choice For Dividend Investors?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … In the past 10 years Bank of America Corporation (NYSE:BAC) has returned an average of 1.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether Bank of America should have a place in your portfolio.
Simply Wall St - – Full articleWhat's The Value Of Bank of America Corporation (NYSE:BAC)?
Understanding these differences is crucial when it comes to putting a value on the bank stock. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.
Simply Wall St - – Full articleWhy These Fundamentals Make Bank of America Corporation’s (NYSE:BAC) More Attractive
As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like banks to vulnerabilities. … We should we cautious when it comes to investing in financial stocks due to the various risks large banks tend to face.
Simply Wall St - – Full articleDid Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?
and want to better understand how you can grow your money by investing in Bank of America Corporation (NYSE:BAC). … With an ROE of 7.44%, Bank of America Corporation (NYSE:BAC) returned in-line to its own industry which delivered 8.46% over the past year. … View out our latest analysis for Bank of America
Simply Wall St - – Full articleWhat Is The Future Prospect For Financials And Bank of America Corporation (NYSE:BAC)?
Check out our latest analysis for Bank of America What’s the catalyst for Bank of America's sector growth? … Bank of America lags the pack with its lower growth rate of 1.40% over the past year, which indicates the company will be growing at a slower pace than its banking peers. … In terms of returns, Bank of America generated 7.44% in the past year, which is 1.03% below the banking sector.
Simply Wall St - – Full articleHow Bank of America Corporation's (NYSE:BAC) Earnings Growth Stacks Up Against The Industry
Today I will examine Bank of America Corporation's (NYSE:BAC) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of BAC's industry performed. … View our latest analysis for Bank of America How Did BAC's Recent Performance Stack Up Against Its Past? … For Bank of America, its most recent earnings (trailing twelve month) is US$18.27B, which, in comparison to last year’s level, Given that these figures are fairly nearsighted, I’ve calculated an annualized five-year value for Bank of America's net income, which stands at US$8.64B This means on average, Bank of America has been able to increase its earnings over the past few years.
Simply Wall St - – Full articleBank of America Corporation (NYSE:BAC) Is Trading 8% Below Its True Value
Looking at line items such as book values, on top of the return and cost of equity, can be fitting for computing BAC’s value. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (11.58% – 9.92%) * $25.91 = $0.43 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.43 / (9.92% – 2.47%) = $5.79 Putting this all together, we get the value of BAC’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $25.91 + $5.79 = $31.7 Relative to the present share price of $29.3, BAC is currently fairly priced by the market.
Simply Wall St - – Full articleDid Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?
Check out our latest analysis for Bank of America Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Bank of America’s profit relative to its shareholders’ equity. … Bank of America’s cost of equity is 9.92%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:BAC Last Perf Apr 27th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.
Simply Wall St - – Full articleBAC Company Info
Map
Description
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. This segment provides its products and services through approximately 4,500 financial centers; 16,000 ATMs; call centers; and digital banking platforms. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, and trust and banking needs, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
Details
| Name: | Bank of America Corporation |
| BAC | |
| Exchange: | NYSE |
| Founded: | 1874 |
| $301,745,023,859 | |
| 9,988,249,714 | |
| Website: | http://www.bankofamerica.com |
| Address: |
Bank of America Corporation Bank of America Corporate Center, 100 North Tryon Street, Charlotte, North Carolina, 28255, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | BAC | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1969 | |
| DB | NCB | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1969 | |
| XTRA | NCB | Common Stock | XETRA Trading Platform | DE | EUR | 02. Jan 1969 | |
| LSE | 0Q16 | Common Stock | London Stock Exchange | GB | CHF | 02. Jan 1969 | |
| SWX | BAC | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1969 | |
| WBAG | BOAC | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1969 | |
| SNSE | BAC | Common Stock | Santiago Stock Exchange | CL | USD | 02. Jan 1969 | |
| BVC | BAC | Common Stock | Bolsa de Valores de Colombia | CO | COP | 02. Jan 1969 | |
| KAS | US_BAC_ | Common Stock | Kazakhstan Stock Exchange | KZ | KZT | 02. Jan 1969 | |
| BMV | BAC * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1969 | |
| BVL | BAC | Common Stock | Bolsa de Valores de Lima | PE | USD | 02. Jan 1969 | |
| NYSE | BAC.PRE | PFD PER1/1000E | New York Stock Exchange | US | USD | 31. Oct 2006 | |
| NYSE | BAC PRJCL | DP1/1000 7.25% J | New York Stock Exchange | US | USD | 16. Nov 2007 | |
| NYSE | BAC.PRL | 7.25%CNV PFD L | New York Stock Exchange | US | USD | 31. Jan 2008 | |
| NYSE | BML.PRL | PFD 1/1200SER5 | New York Stock Exchange | US | USD | 26. Mar 2007 | |
| NYSE | BAC.PRW | DEPSHS PFD SER W | New York Stock Exchange | US | USD | 05. Sep 2014 | |
| NYSE | BAC.PRY | DEP 1/1000 PFD | New York Stock Exchange | US | USD | 23. Jan 2015 | |
| NYSE | BAC.PRC | PFD CUM SER C | New York Stock Exchange | US | USD | 25. Jan 2016 | |
| NYSE | BAC.PRA | DEP SHS PFD EE | New York Stock Exchange | US | USD | 20. Apr 2016 | |
| NYSE | BML.PRH | PFD 1/1200SER2 | New York Stock Exchange | US | USD | 08. Mar 2005 | |
| NYSE | BML.PRG | PFD1/1200 SR1 | New York Stock Exchange | US | USD | 27. Oct 2004 | |
| OTCPK | NCB2 | 5.2%-VAR SNR NTS PERP USD 'U' | Pink Sheets LLC | US | USD | 23. May 2013 | |
| BOVESPA | BOAC34 | BDR REPR 1 COM STK | Bolsa de Valores de Sao Paulo | BR | BRL | 03. Jan 2012 | |
| BASE | BA.C | CEDEAR EACH REP 1/2 COM(USD) | Buenos Aires Stock Exchange | AR | ARS | 29. Aug 2007 | |
| NYSE | BML.PRJ | PFD DP1/1200 4 | New York Stock Exchange | US | USD | 14. Nov 2005 | |
| NYSE | BAC.PRK | 5.875 NCM PFD HH | New York Stock Exchange | US | USD | 18. Jul 2018 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/09/19 21:01 |
| End of day share price update: | 2018/09/19 00:00 |
| Last estimates confirmation: | 2018/09/19 |
| Last earnings update: | 2018/06/30 |
| Last annual earnings update: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
