B of A Stock Valuation

BAC
 Stock
  

USD 35.07  1.15  3.39%   

Do you wonder what the value of Bank Of America is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as B of A, is its stock price multiplied by the total number of shares outstanding, calculating B of A's enterprise value requires a different approach. It uses B of A's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 10, 2022, Free Cash Flow is expected to decline to about (7.4 B). In addition to that, Enterprise Value is expected to decline to about 297.2 B.
Bank Of America shows a prevailing Real Value of $42.76 per share. The current price of the firm is $35.07. At this time, the firm appears to be undervalued. Our model approximates the value of Bank Of America from analyzing the firm fundamentals such as Profit Margin of 30.69 %, return on equity of 10.26 %, and Current Valuation of 150.26 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
B of A Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as B of A's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 35.07
Please note that B of A'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 B of A's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Bank Of America is useful when determining the fair value of the B of A stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of B of A. Since B of A is currently traded on the exchange, buyers and sellers on that exchange determine the market value of B of A Stock. However, B of A'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.
42.76
Real Value
44.81
Upside
Estimating the potential upside or downside of Bank Of America helps investors to forecast how B of A 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 B of A more accurately as focusing exclusively on B of A's fundamentals will not take into account other important factors:
Earnings
Estimates (11)
LowProjected EPSHigh
3.363.493.53
Details
Hype
Prediction
LowEstimated ValueHigh
33.2035.2537.30
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.560.580.60
Details
15 Analysts
Consensus
LowTarget PriceHigh
40.0051.1164.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use B of A's intrinsic value based on its ongoing forecasts of B of A's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against B of A's closest peers. When choosing an evaluation method for Bank Of America, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

B of A Investments

1.89 Trillion

B of A Valuation Drivers Correlation

Many accounts on the financial statements of Bank Of America are highly interrelated and sometimes correlated. Consequently, when conducting B of A's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of B of A
Click cells to compare fundamentals

B of A Valuation Trend

Knowing B of A's actual value is paramount for traders to make sound investment determinations. B of A's real value is not only important for the investor to make better decisions but also for a more accurate overall view of B of A's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both B of A's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

B of A Market Cap

Bank Of America is number one stock in market capitalization category among related companies. Market capitalization of Banks—Diversified industry is currently estimated at about 985.18 Billion. B of A totals roughly 275.35 Billion in market capitalization claiming about 28% of stocks in Banks—Diversified industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

B of A Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining B of A's current stock value. Our valuation model uses many indicators to compare B of A value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across B of A competition to find correlations between indicators driving B of A's intrinsic value. More Info.
Bank Of America is number one stock in price to sales category among related companies. It is number one stock in beta category among related companies totaling about  0.47  of Beta per Price to Sales. The ratio of Price to Sales to Beta for Bank Of America is roughly  2.13 . Comparative valuation analysis is a catch-all model that can be used if you cannot value B of A by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for B of A's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the B of A's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates B of A'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 B of A and how it compares across the competition.

About B of A Valuation

The equity valuation mechanism determines the current worth of Bank Of America on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Bank Of America. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bank Of America based exclusively on its fundamental and basic technical indicators. By analyzing B of A's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of B of A's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of B of A. We calculate exposure to B of A's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to B of A's related companies.
Last ReportedProjected for 2022
Gross Profit89.1 B97.6 B
Profit Margin 0.34  0.28 
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 Quarterly Enterprise Value

187.31 Billion

B of A's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether B of A's value is low or high relative to the company's performance and growth projections. Determining the market value of B of A can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of B of A represents a small ownership stake in the entity. As a stockholder of B of A, 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.

B of A Dividends Analysis For Valuation

B of A Preferred Dividends Income Statement Impact is projected to increase significantly based on the last few years of reporting. The past year's Preferred Dividends Income Statement Impact was at 1.63 Billion. The current year Dividends per Basic Common Share is expected to grow to 0.84, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (8.3 B). . B of A Earnings per Basic Share are projected to slightly grow based on the last few years of reporting. The past year's Earnings per Basic Share were at 3.60. The current year Earnings per Diluted Share is expected to grow to 3.85, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 163.1 B.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact1.6 B1.7 B
Payment of Dividends and Other Cash Distributions-8.1 B-8.3 B
Dividend Yield 0.018  0.0168 
Dividends per Basic Common Share 0.78  0.84 
There are various types of dividends B of A 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 B of A 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 B of A pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of B of A by the value of the dividends paid out.

B of A Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as B of A does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-32.30%
Revenue Growth-4.00%
Payout Ratio26.25%
Earnings Growth-29.30%
Enterprise Value To Revenue1.65

B of A 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 B of A we look at many different elements of the entity such as B of A's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. B of A's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final B of A's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as B of A, 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 B of A'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 B of A's worth.
Continue to Trending Equities. 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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Complementary Tools for B of A Stock analysis

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.
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
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.