Bank of America Corporation

NYSE:BAC Stock Report

Market Cap: US$298.3b

Bank of America Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($37.81) is trading below our estimate of fair value ($51.03)

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.

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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio3.3x

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 Average13.1x
WFC Wells Fargo
11.3x3.3%US$204.0b
JPM JPMorgan Chase
12x-1.7%US$574.7b
C Citigroup
15.3x20.4%US$120.2b
USB U.S. Bancorp
13.6x10.6%US$68.6b
BAC Bank of America
12x3.6%US$298.3b

Price-To-Earnings vs Peers: BAC is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BAC is expensive based on its Price-To-Earnings Ratio (12x) compared to the US Banks industry average (9.6x).


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 Ratio12x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: BAC is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.81
US$37.54
-0.7%
8.5%US$46.00US$33.00n/a22
Mar ’25US$34.35
US$37.60
+9.5%
10.1%US$50.00US$31.00n/a23
Feb ’25US$33.55
US$37.50
+11.8%
11.0%US$50.00US$30.00n/a22
Jan ’25US$33.67
US$34.76
+3.2%
14.0%US$50.00US$28.00n/a23
Dec ’24US$30.96
US$33.50
+8.2%
15.6%US$51.00US$27.50n/a23
Nov ’24US$26.40
US$33.64
+27.4%
15.0%US$49.00US$27.00n/a22
Oct ’24US$27.38
US$34.68
+26.7%
13.0%US$48.00US$27.50n/a22
Sep ’24US$28.98
US$35.07
+21.0%
13.9%US$49.00US$28.00n/a22
Aug ’24US$31.62
US$35.55
+12.4%
15.4%US$52.00US$28.00n/a22
Jul ’24US$28.69
US$35.33
+23.1%
16.1%US$49.00US$28.00n/a22
Jun ’24US$27.78
US$35.94
+29.4%
14.1%US$47.00US$28.00n/a22
May ’24US$29.04
US$36.23
+24.7%
13.6%US$47.00US$28.00n/a23
Apr ’24US$28.60
US$39.31
+37.5%
14.0%US$52.00US$28.00n/a23
Mar ’24US$34.14
US$40.59
+18.9%
13.5%US$53.00US$33.00US$34.3523
Feb ’24US$35.92
US$40.53
+12.8%
12.6%US$52.00US$33.00US$33.5523
Jan ’24US$33.12
US$41.24
+24.5%
11.9%US$52.00US$32.00US$33.6724
Dec ’23US$36.55
US$41.76
+14.3%
12.5%US$55.00US$32.00US$30.9623
Nov ’23US$36.20
US$41.22
+13.9%
12.2%US$55.00US$32.00US$26.4023
Oct ’23US$30.20
US$42.08
+39.3%
11.2%US$55.00US$34.00US$27.3823
Sep ’23US$33.47
US$42.41
+26.7%
11.9%US$55.00US$34.00US$28.9823
Aug ’23US$33.71
US$42.25
+25.3%
12.3%US$55.00US$34.00US$31.6225
Jul ’23US$31.56
US$45.24
+43.3%
15.7%US$64.00US$33.25US$28.6924
Jun ’23US$36.67
US$48.07
+31.1%
15.1%US$66.00US$33.20US$27.7824
May ’23US$35.68
US$49.02
+37.4%
14.0%US$66.00US$40.00US$29.0424
Apr ’23US$40.90
US$50.95
+24.6%
12.6%US$66.00US$40.00US$28.6024
Mar ’23US$42.47
US$51.64
+21.6%
12.3%US$66.00US$40.00US$34.1424

Analyst Forecast: Target price is lower than the current share price.


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