` Comparison: SCHW vs BAC - Alpha Spread

SCHW
vs
BAC

Over the past 12 months, SCHW has underperformed BAC, delivering a return of -2% compared to the BAC's +17% growth.

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SCHW
BAC
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Valuation Comparison

SCHW Intrinsic Value
2 748.01 MXN
Undervaluation 42%
Intrinsic Value
Price
BAC Intrinsic Value
65.098 USD
Undervaluation 21%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Charles Schwab Corp
BMV:SCHW
1 597.35 MXN
Bank of America Corp
NYSE:BAC
51.255 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
SCHW, BAC

SCHW
BAC
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Charles Schwab Corp
Revenue
Bank of America Corp
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
SCHW, BAC

SCHW
BAC
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Charles Schwab Corp
BMV:SCHW
Bank of America Corp
NYSE:BAC
FCF is not applicable for financial companies
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What is Free Cash Flow?

Gross Margin

SCHW
86.4%
BAC
LTM 3Y Avg 5Y Avg 10Y Avg
Charles Schwab Corp
Bank of America Corp
Not applicable for financial companies

Operating Margin

SCHW
41.4%
BAC
LTM 3Y Avg 5Y Avg 10Y Avg
Charles Schwab Corp
Bank of America Corp
Not applicable for financial companies

Net Margin

SCHW
30.4%
BAC
25.7%

FCF Margin

SCHW
-5%
BAC
LTM 3Y Avg 5Y Avg 10Y Avg
Charles Schwab Corp
Bank of America Corp
Not applicable for financial companies

ROE

SCHW
17.2%
BAC
9.7%

ROA

SCHW
1.8%
BAC
0.9%

ROIC

SCHW
2.9%
BAC
LTM 3Y Avg 5Y Avg 10Y Avg
Charles Schwab Corp
Bank of America Corp
Not applicable for financial companies

ROCE

SCHW
16.3%
BAC
LTM 3Y Avg 5Y Avg 10Y Avg
Charles Schwab Corp
Bank of America Corp
Not applicable for financial companies

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
SCHW, BAC

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Performance Gap
SCHW, BAC

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SCHW
BAC
Difference
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Performance By Year
SCHW, BAC

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SCHW
BAC
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett