BAC Intrinsic Valuation and Fundamental Analysis - Bank of America Corp - Alpha Spread

Bank of America Corp
NYSE:BAC

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Bank of America Corp Logo
Bank of America Corp
NYSE:BAC
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Price: 41.95 USD 4.95% Market Closed
Market Cap: 325.5B USD
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Intrinsic Value

The intrinsic value of one BAC stock under the Base Case scenario is 55.62 USD. Compared to the current market price of 41.95 USD, Bank of America Corp is Undervalued by 25%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

BAC Intrinsic Value
55.62 USD
Undervaluation 25%
Intrinsic Value
Price
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Base Case
Best Case

Valuation Backtest
Bank of America Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Bank of America Corp., one of the largest financial institutions in the United States, operates as a multifaceted banking entity that serves millions of customers worldwide. Founded in 1904, the bank has evolved through strategic acquisitions, including the purchase of Merrill Lynch, which expanded its reach into investment and wealth management services. Bank of America stands out for its strong retail banking presence, delivering a wide array of products—from checking and savings accounts to mortgages and loans—which cater to both individual consumers and small businesses. With its robust digital banking platform, the bank has embraced technology to enhance customer experiences, making it...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Bank of America Corp

Net Loans 1T
Investments 1.8T
PP&E 11.9B
Intangibles 69B
Other Assets 382.3B
Total Deposits 1.9T
Short Term Debt 408.5B
Long Term Debt 290.5B
Other Liabilities 354.6B
Earnings Calls

Bank of America reported a net income of $6.9 billion for Q2 2024, with earnings per share at $0.83. Revenue for the quarter was $5.6 billion, up 6% year-over-year, driven by a 14% increase in asset management fees and a 29% rise in investment banking fees. Deposits grew 2% year-over-year, reflecting customer loyalty, while digital engagement surged with over 47 million active mobile users. Despite headwinds from higher funding costs, the company expects net interest income to grow from Q2's trough, anticipating to reach approximately $14.5 billion in Q4 2024, aided by strategic investments and operational efficiencies.

What is Earnings Call?

Wall St
Price Targets

BAC Price Targets Summary
Bank of America Corp

Wall Street analysts forecast BAC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for BAC is 46.73 USD with a low forecast of 39.39 USD and a high forecast of 54.6 USD.

Lowest
Price Target
39.39 USD
6% Downside
Average
Price Target
46.73 USD
11% Upside
Highest
Price Target
54.6 USD
30% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
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Growth 10Y
Dividend Safety Score
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Previous Payment
-
Today
Next Payment
-
Today
Oct 12, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
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Shareholder Yield

Current shareholder yield for BAC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Ownership

BAC Insider Trading
Buy and sell transactions by insiders

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Profile

Bank of America Corp Logo
Bank of America Corp

Country

United States of America

Industry

Banking

Market Cap

326.2B USD

Dividend Yield

2.34%

Description

Bank of America Corp. is a bank and financial holding company, which engages in the provision of banking and nonbank financial services. The company is headquartered in Charlotte, North Carolina and currently employs 208,000 full-time employees. The firm's segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM segment provides client experience through a network of financial advisors focused on clients with over $250,000 in total investable assets, including solutions to meet client's needs through a set of investment management, brokerage, banking, and retirement products. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.

Contact

NORTH CAROLINA
Charlotte
Bank of America Corporate Center, 100 N Tryon St
+17043865681.0
www.bankofamerica.com

IPO

1979-06-05

Employees

208 000

Officers

See Also

Discover More
What is the Intrinsic Value of one BAC stock?

The intrinsic value of one BAC stock under the Base Case scenario is 55.62 USD.

Is BAC stock undervalued or overvalued?

Compared to the current market price of 41.95 USD, Bank of America Corp is Undervalued by 25%.

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