QualityDipStocks / Finance · Major Banks
Bank of America BAC
Outside our quality screen, so we don’t track its dips. It’s 23% below its 52-week high.
Outside our quality screen, trading near our fair value estimate.
- Fair value est.
- $45.26−10%
- Market Value
- $50.95price −2%
- Off 52-wk high
- −23%
- Risk vs market
- Below marketbeta 0.73
4 bullish · 4 bearish See why
Key levels
Every level vs today’s $50.01
- Fair value est.base case$45.26−9.5%
- 52-wk lowlowest close, 1 year$46.72−6.6%
- PriceFri Oct 30 close$50.01you are here
- Market Valueavg paid since Oct 14$50.95+1.9%
- 52-wk highhighest close, 1 year$64.81+29.6%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 9.5% ±2 points. Bear = 10.5% and 7.5%; bull = 8.5% and 11.5%. A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, BAC would need a return on equity of about 11% a year; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much BAC moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves a bit less than the market, but its own price swings are 1.7× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.73
- Volatility
- 22% vs 13% SPY
- Correlation SPY
- 0.43
- Correlation QQQ
- 0.25
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
Cash returnsShare count down 5.3% in a year: $25.6B of buybacks over 12 months.
GrowthDiluted EPS grew 19% to $3.81 in FY2025.
Cash returnsDividend yield of 2.9% ($9.9B paid over 12 months, 32% of earnings).
ValuationPrice / book of 1.2×, below the 1.8× median for the 143 Finance companies we cover.
Top bearish points 4 of 5
GrowthSales grew 5.4% over the last 12 months, below the 11% median for the 142 Finance companies we cover.
ProfitabilityReturn on equity of 10%, below the 13% median for the 143 Finance companies we cover.
GrowthSales grew 6.0% a year over the last three fiscal years, below the 9.3% median for the 144 Finance companies we cover.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%.
Who’s talking about it
Notable investors, executives, analysts and public figures on Bank of America in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Major Banks
All fundamentals
P/E 11.2 · ROE 10% · Sales +5%
Valuation
- P/E
- 11.2×Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for a bank
- FCF yield
- n/acash flow isn't a clean measure for a bank
- EV / EBITDA
- n/anot meaningful for a bank
- Price / sales
- 2.87×
- Price / book
- 1.16×
- Market cap
- $345Bprice × diluted shares
- Enterprise value
- $414B
Growth
- Revenue, 12 months
- $120Bnet interest income + noninterest income
- Sales growth, 12 months
- +5.4%vs the 12 months before
- Sales growth, 3 yrs
- +6.0%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.20
- EPS growth, last FY
- +19.4%
- Net income, 12 months
- $30.8B
- Net income growth
- +10%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a bank
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 25.6%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 10%
- Return on invested capital
- n/anot meaningful for a bank
Balance sheet
- Cash & short-term inv.
- $250B
- Total debt
- $319B
- Net cash
- n/anot meaningful for a bank
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a bank
- Interest coverage
- n/anot meaningful for a bank
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 2.88%$9.9B paid
- Payout ratio
- 32%
- Buybacks, 12 months
- $25.6B7.4% of market cap
- Share count, 1 year
- −5.3%diluted shares vs a year ago
- Stock-based comp
- $4.2B
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Bank of America’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $45.26 · MV $50.95
Financials model (residual income): book value $45.22 a share on Sep 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 9.5%, the average of 9.8% for the trailing 12 months to Sep 30, 2026 and 9.2% over fiscal 2021–2025, on average common equity; payout 97% of earnings (dividends 27% + net buybacks 70%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Oct 30, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 28 · 5 days −1.1%
The business
FCF $-22.7B · Sales +7%
- Free cash flow, 12 months−$22.7B
- Free-cash-flow yield−6.3%
- Return on equity11%
- Sales growth (latest quarter vs year-ago quarter)+7%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
BAC is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.