Bank Of America Stock Probability Of Bankruptcy

BAC Stock  USD 36.01  0.60  1.69%   
Bank of America's odds of distress is under 6% at the present time. It has tiny probability of undergoing some form of financial crisis in the near future. Chance Of Bankruptcy shows the probability of financial distress over the next two years of operations under current economic and market conditions. All items used in analyzing the odds of distress are taken from the Bank balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Bank of America Piotroski F Score and Bank of America Altman Z Score analysis.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
  

Bank Probability Of Bankruptcy Analysis

Bank of America'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.
 2021 2022 2023 2024 (projected)
Interest Expense4.7B20.1B73.3B77.0B
Depreciation And Amortization1.9B2.0B2.0B1.6B

Probability Of Bankruptcy

 = 

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

Current Bank of America Probability Of Bankruptcy

    
  Less than 6%  
Most of Bank of America'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 Bank of America 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 Bank of America 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 Bank of America'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 Bank of America. If investors know Bank 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 Bank of America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
0.92
Earnings Share
3.08
Revenue Per Share
11.731
Quarterly Revenue Growth
(0.11)
The market value of Bank Of America is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of America's value that differs from its market value or its book value, called intrinsic value, which is Bank of America'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 Bank of America's market value can be influenced by many factors that don't directly affect Bank of America'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 Bank of America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of America'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.

Bank Probability Of Bankruptcy Driver Correlations

Understanding the fundamental principles of building solid financial models for Bank of America is extremely important. It helps to project a fair market value of Bank Stock properly, considering its historical fundamentals such as Probability Of Bankruptcy. Since Bank of America's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Bank of America's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Bank of America's interrelated accounts and indicators.
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Click cells to compare fundamentals
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.
Competition

Based on the latest financial disclosure, Bank Of America has a Probability Of Bankruptcy of 6.0%. This is 87.98% lower than that of the Banks sector and significantly higher than that of the Financials industry. The probability of bankruptcy for all United States stocks is 84.94% higher than that of the company.

Bank Probability Of Bankruptcy Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Bank of America's direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Bank of America could also be used in its relative valuation, which is a method of valuing Bank of America by comparing valuation metrics of similar companies.
Bank of America is currently under evaluation in probability of bankruptcy category among related companies.

Bank of America Main Bankruptcy Drivers

201920202021202220232024 (projected)
Asset Turnover0.03730.03520.02630.02960.03030.0471
Net Debt96.4B(104.8B)(51.5B)65.5B(7.1B)(6.8B)
Total Current Liabilities24.2B19.3B23.8B26.9B958.6B1.0T
Non Current Liabilities Total240.9B262.9B280.1B2.5T1.9T991.7B
Total Assets2.4T2.8T3.2T3.1T3.2T1.7T
Total Current Assets490.0B702.7B742.0B539.3B981.0B1.0T
Total Cash From Operating Activities61.8B38.0B(7.2B)(6.3B)45.0B22.9B

Bank of America ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Bank of America's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Bank of America's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Bank Fundamentals

About Bank of America 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 Bank of America 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 213000 people.

Pair Trading with Bank of America

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 Bank of America 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 Bank of America will appreciate offsetting losses from the drop in the long position's value.

Moving together with Bank Stock

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The ability to find closely correlated positions to Bank of America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of America 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 Bank of America - 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 Bank of America 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 Bank of America 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 Bank of America 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
When determining whether Bank Of America offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of America's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of America Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of America Stock:
Check out Bank of America Piotroski F Score and Bank of America Altman Z Score analysis.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
Note that the Bank Of America information on this page should be used as a complementary analysis to other Bank of America'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 the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Complementary Tools for Bank Stock analysis

When running Bank of America's price analysis, check to measure Bank of America'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 Bank of America is operating at the current time. Most of Bank of America's value examination focuses on studying past and present price action to predict the probability of Bank of America's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of America's price. Additionally, you may evaluate how the addition of Bank of America to your portfolios can decrease your overall portfolio volatility.
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Is Bank of America'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 Bank of America. If investors know Bank 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 Bank of America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
0.92
Earnings Share
3.08
Revenue Per Share
11.731
Quarterly Revenue Growth
(0.11)
The market value of Bank Of America is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of America's value that differs from its market value or its book value, called intrinsic value, which is Bank of America'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 Bank of America's market value can be influenced by many factors that don't directly affect Bank of America'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 Bank of America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of America'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.