B of A Z Score

BAC
 Stock
  

USD 32.31  0.23  0.72%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to B of A Piotroski F Score and B of A Valuation analysis.
  
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The current year Capital Expenditure is expected to grow to about 6.2 M, whereas Return on Invested Capital is forecasted to decline to 0.0119. B of A Gross Profit is projected to increase significantly based on the last few years of reporting. The past year's Gross Profit was at 89.11 Billion. The current year Operating Income is expected to grow to about 29.9 B, whereas Consolidated Income is forecasted to decline to about 26.3 B.

B of A Z Score Analysis

B of A's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Net Income27.43 B17.89 B31.98 B26.3 B
Gross Profit91.24 B85.53 B89.11 B97.55 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

B of A Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for B of A is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since B of A'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 B of A'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 B of A's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, Bank Of America has a Z Score of 0.0. This is 100.0% lower than that of the Financial Services sector and about the same as Banks—Diversified (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.

B of A Z Score Peer Comparison

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

B of A Current Valuation Drivers

We derive many important indicators used in calculating different scores of B of A from analyzing B of A's financial statements. These drivers represent accounts that assess B of A's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of B of A's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee87.23 K137.97 K131.88 K83.78 K153.74 K165.88 K
Revenue Per Employee479.73 K542.08 K546.1 K438.95 K451.21 K428.25 K
Average Assets2,266.84 B2,328.37 B2,408.37 B2,729.93 B3,063.71 B2,970.54 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA31.32 B36.65 B34.48 B20.84 B35.87 B32.02 B
Earnings Before Interest Taxes and Depreciation Amortization USD31.32 B36.65 B34.48 B20.84 B35.87 B32.02 B
Earnings before Tax29.21 B34.58 B32.75 B19 B33.98 B29.66 B
Average Equity269.69 B264.48 B267.9 B268.08 B273.41 B291.22 B
Enterprise Value359.96 B235.6 B356.72 B93.72 B322.13 B297.18 B
Free Cash Flow9.86 B39.52 B61.78 B37.99 B(7.19 B)(7.38 B)
Invested Capital2,267.88 B2,276.1 B2,352.03 B2,512.19 B2,990.59 B2,929.62 B
Invested Capital Average2,255.75 B2,263.28 B2,351.2 B2,460.31 B2,920.07 B2,896.83 B
Market Capitalization307.91 B241.82 B316.81 B262.21 B364.11 B319.38 B
Tangible Asset Value2,212.28 B2,285.56 B2,365.13 B2,750.68 B3,100.47 B2,954.11 B

B of A Institutional Holders

Institutional Holdings refers to the ownership stake in B of A that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of B of A's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing B of A's value.
Security TypeSharesValue
Berkshire Hathaway IncCommon SharesB41.6 B
Vanguard Group IncCommon Shares591.2 M24.4 B
Blackrock IncCommon Shares498.6 M20.6 B
State Street CorpCommon Shares325.3 M13.4 B
Fmr LlcCommon Shares216.7 M8.9 B
Jpmorgan Chase CoCommon Shares126.9 M5.2 B
Geode Capital Management LlcCommon Shares117.7 M4.8 B

B of A Fundamentals

About B of A 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 B of A 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 208000 people.

B of A Investors Sentiment

The influence of B of A's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in B of A. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

B of A Implied Volatility

    
  38.45  
B of A's implied volatility exposes the market's sentiment of Bank Of America stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if B of A's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that B of A stock will not fluctuate a lot when B of A's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards B of A in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, B of A's short interest history, or implied volatility extrapolated from B of A options trading.

Current Sentiment - BAC

Bank Of America Investor Sentiment

Predominant part of Macroaxis users are currently bullish on Bank Of America. What is your opinion about investing in Bank Of America? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Pair Trading with B of A

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 B of A 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 B of A will appreciate offsetting losses from the drop in the long position's value.

B of A Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to B of A could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace B of A 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 B of A - 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 B of A 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 B of A 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 B of A 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
Continue to B of A Piotroski F Score and B of A Valuation analysis. 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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.
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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.
Quarterly Earnings Growth YOY
-0.07
Market Capitalization
260.3 B
Quarterly Revenue Growth YOY
-0.06
Return On Assets
0.01
Return On Equity
0.11
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.