B of A Probability Of Bankruptcy

BAC
 Stock
  

USD 31.08  0.51  1.67%   

Bank Of America Probability Of Bankruptcy is used to show its chance of financial distress over the next two years of operations under current economic and market conditions. Bank Of America Probability Of Bankruptcy is determined by interpolating and adjusting B of A Altman Z Score to account for off-balance-sheet items and missing or unfiled public information. All items used in analyzing the odds of distress are taken from the B of A balance sheet as well as cash flow and income statements available from the company's most recent filings. Continue to B of A Piotroski F Score and B of A Altman Z Score analysis.
  

B of A Probability Of Bankruptcy Analysis

B of A's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.
Probability Of Bankruptcy 
 = 
Normalized 
 
Z-Score 
More About Probability Of Bankruptcy | All Equity Analysis

Current B of A Probability Of Bankruptcy

    
  48%  
Most of B of A's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Bank Of America is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Our calculation of B of A probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting B of A odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of Bank Of America financial health.
Is B of A's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of B of A. If investors know B of A will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about B of A listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bank Of America is measured differently than its book value, which is the value of B of A that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because B of A's market value can be influenced by many factors that don't directly affect B of A's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine B of A value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
Compare to competition

Based on the latest financial disclosure, Bank Of America has a Probability Of Bankruptcy of 48.0%. This is 3.87% lower than that of the Financial Services sector and significantly higher than that of the Banks—Diversified industry. The probability of bankruptcy for all United States stocks is 20.51% lower than that of the firm.
Chance Of Financial Distress
Less than 49
Bank Of America has less than 49 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for B of A stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity. More Info

B of A Fundamentals

About B of A Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Bank Of America's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of B of A using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bank Of America based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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 company was founded in 1784 and is based in Charlotte, North Carolina. B of A operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 210000 people.

B of A Implied Volatility

    
  62.95  
B of A's implied volatility exposes the market's sentiment of Bank Of America stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if B of A's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that B of A stock will not fluctuate a lot when B of A's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards B of A in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, B of A's short interest history, or implied volatility extrapolated from B of A options trading.

Pair Trading with B of A

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if B of A position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in B of A will appreciate offsetting losses from the drop in the long position's value.

Moving together with B of A

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The ability to find closely correlated positions to B of A could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace B of A when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back B of A - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank Of America to buy it.
The correlation of B of A is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as B of A moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for B of A can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to B of A Piotroski F Score and B of A Altman Z Score analysis. Note that the Bank Of America information on this page should be used as a complementary analysis to other B of A's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Bank Of America price analysis, check to measure B of A'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 B of A is operating at the current time. Most of B of A's value examination focuses on studying past and present price action to predict the probability of B of A's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move B of A's price. Additionally, you may evaluate how the addition of B of A to your portfolios can decrease your overall portfolio volatility.
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Is B of A's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of B of A. If investors know B of A will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about B of A listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bank Of America is measured differently than its book value, which is the value of B of A that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because B of A's market value can be influenced by many factors that don't directly affect B of A's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine B of A value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.