Bank of America Valuation
| BAC Stock | USD 47.51 0.26 0.54% |
At this time, the firm appears to be overvalued. Bank of America shows a prevailing Real Value of $41.88 per share. The current price of the firm is $47.51. Our model approximates the value of Bank of America from analyzing the firm fundamentals such as Profit Margin of 0.25 %, return on equity of 0.0809, and Current Valuation of 361.01 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Bank of America's valuation include:
Price Book 1.3478 | Enterprise Value 361 B | Price Sales 3.8524 | Forward PE 13.0208 | Trailing PE 17.2138 |
Overvalued
Today
Please note that Bank of America's price fluctuation is very steady at this time. Calculation of the real value of Bank of America is based on 3 months time horizon. Increasing Bank of America's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Bank of America is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bank Stock. However, Bank of America's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 47.51 | Real 41.88 | Target 32.07 | Hype 47.43 | Naive 47.55 |
The real value of Bank Stock, also known as its intrinsic value, is the underlying worth of Bank of America Company, which is reflected in its stock price. It is based on Bank of America's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Bank of America's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Bank of America helps investors to forecast how Bank stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Bank of America more accurately as focusing exclusively on Bank of America's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Bank of America's intrinsic value based on its ongoing forecasts of Bank of America's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Bank of America's closest peers. If more than one evaluation category is relevant for Bank of America we suggest using both methods to arrive at a better estimate.
Bank of America Cash |
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Bank Valuation Trend
Comparing Bank of America's enterprise value against its market capitalization is a good way to estimate the value of Bank of America uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Bank Revenue by Product
Bank of America Total Value Analysis
Bank of America is currently forecasted to have company total value of 361.01 B with market capitalization of 364.54 B, debt of 334.3 B, and cash on hands of 733.43 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Bank of America fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
361.01 B | 364.54 B | 334.3 B | 733.43 B |
Bank of America Investor Information
About 63.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.35. Some equities with similar Price to Book (P/B) outperform the market in the long run. Bank of America has Price/Earnings To Growth (PEG) ratio of 2.13. The entity last dividend was issued on the 6th of December 2024. The firm had 2:1 split on the 30th of August 2004. Based on the key measurements obtained from Bank of America's financial statements, Bank of America may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Bank of America Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Bank indicates not a very effective usage of assets in November.Bank of America Ownership Allocation
Bank of America holds a total of 7.67 Billion outstanding shares. Over half of Bank of America's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Please note that on October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Bank of America's common stock.Bank of America Profitability Analysis
The company reported the last year's revenue of 98.58 B. Total Income to common stockholders was 26.52 B with profit before taxes, overhead, and interest of 92.41 B.Bank of America Past Distributions to stockholders
| 27th of September 2024 | ||
| 28th of June 2024 | ||
| 29th of December 2023 | ||
| 29th of September 2023 | ||
| 30th of June 2023 | ||
| 31st of March 2023 | ||
| 30th of December 2022 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Bank of America's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Bank of America and how it compares across the competition.
About Bank of America Valuation
The stock valuation mechanism determines Bank of America's current worth on a weekly basis. Our valuation model uses a comparative analysis of Bank of America. We calculate exposure to Bank of America's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Bank of America's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 94.2 B | 61.2 B | |
| Pretax Profit Margin | 0.29 | 0.31 | |
| Operating Profit Margin | 0.40 | 0.26 | |
| Net Profit Margin | 0.27 | 0.17 | |
| Gross Profit Margin | 0.87 | 0.68 |
Bank of America Quarterly Retained Earnings |
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A single share of Bank of America represents a small ownership stake in the entity. As a stockholder of Bank, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Bank of America Dividends Analysis For Valuation
At present, Bank of America's Dividend Payout Ratio is projected to slightly decrease based on the last few years of reporting. . At present, Bank of America's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -9.1 B | -8.6 B | |
| Dividend Yield | 0.03 | 0.04 | |
| Dividend Payout Ratio | 0.34 | 0.51 | |
| Dividend Paid And Capex Coverage Ratio | 4.95 | 4.43 |
There are various types of dividends Bank of America can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Bank shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Bank of America directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Bank pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Bank of America by the value of the dividends paid out.
Bank of America Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 8.1 B | |
| Quarterly Earnings Growth Y O Y | -0.1 | |
| Forward Price Earnings | 13.0208 |
Bank of America Current Valuation Indicators
Valuation refers to the process of determining the present value of Bank of America and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Bank we look at many different elements of the entity such as Bank's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Bank of America, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Bank of America's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Bank of America's worth.Complementary Tools for Bank Stock analysis
When running Bank of America's price analysis, check to measure Bank of America's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bank of America is operating at the current time. Most of Bank of America's value examination focuses on studying past and present price action to predict the probability of Bank of America's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of America's price. Additionally, you may evaluate how the addition of Bank of America to your portfolios can decrease your overall portfolio volatility.
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