Bank Invested Capital vs Price to Sales Ratio Analysis
BAC Stock | USD 36.97 1.20 3.35% |
Bank of America financial indicator trend analysis is way more than just evaluating Bank of America prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Bank of America is a good investment. Please check the relationship between Bank of America Invested Capital and its Price To Sales Ratio accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
Invested Capital vs Price To Sales Ratio
Invested Capital vs Price to Sales Ratio Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Bank of America Invested Capital account and Price to Sales Ratio. At this time, the significance of the direction appears to have strong contrarian relationship.
The correlation between Bank of America's Invested Capital and Price to Sales Ratio is -0.64. Overlapping area represents the amount of variation of Invested Capital that can explain the historical movement of Price to Sales Ratio in the same time period over historical financial statements of Bank of America, assuming nothing else is changed. The correlation between historical values of Bank of America's Invested Capital and Price to Sales Ratio is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Invested Capital of Bank of America are associated (or correlated) with its Price to Sales Ratio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Price to Sales Ratio has no effect on the direction of Invested Capital i.e., Bank of America's Invested Capital and Price to Sales Ratio go up and down completely randomly.
Correlation Coefficient | -0.64 |
Relationship Direction | Negative |
Relationship Strength | Weak |
Invested Capital
Invested capital represents the total cash investment that shareholders and debt holders have contributed to Bank of America. There are two different methods for calculating Bank of America invested capital: operating approach and financing approach. Understanding Bank of America invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.Price To Sales Ratio
Price to Sales Ratio is figured by comparing Bank of America stock price to its revenues. An advantage to using Price to Sales ratio is that it is based on Bank of America sales, a figure that is much harder to manipulate than other Bank of America multiples. Because sales tend to be more stable P/S ratio can be a good tool for screening cyclical companies fluctuating earnings patterns. A valuation ratio that compares a company’s stock price to its revenues, calculated by dividing the company’s market cap by its total sales or revenue over a 12-month period.Most indicators from Bank of America's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Bank of America current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.At present, Bank of America's Enterprise Value is projected to increase significantly based on the last few years of reporting.
2021 | 2022 | 2023 | 2024 (projected) | Interest Expense | 4.7B | 20.1B | 73.3B | 77.0B | Depreciation And Amortization | 1.9B | 2.0B | 2.0B | 1.6B |
Bank of America fundamental ratios Correlations
Click cells to compare fundamentals
Bank of America Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Bank of America fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 2.4T | 2.8T | 3.2T | 3.1T | 3.2T | 1.7T | |
Short Long Term Debt Total | 265.1B | 282.3B | 303.9B | 302.9B | 334.3B | 241.9B | |
Total Current Liabilities | 24.2B | 19.3B | 23.8B | 26.9B | 958.6B | 1.0T | |
Total Stockholder Equity | 264.8B | 272.9B | 270.1B | 273.2B | 291.6B | 166.8B | |
Property Plant And Equipment Net | 10.6B | 11B | 10.8B | 11.5B | 11.9B | 9.4B | |
Net Debt | 96.4B | (104.8B) | (51.5B) | 65.5B | (7.1B) | (6.8B) | |
Retained Earnings | 156.3B | 164.1B | 188.1B | 207.0B | 224.7B | 235.9B | |
Cash | 168.7B | 387.0B | 355.4B | 237.5B | 341.4B | 358.5B | |
Non Current Assets Total | 781.5B | 963.7B | 1.3T | 1.2T | 2.2T | 2.3T | |
Non Currrent Assets Other | (781.5B) | (963.7B) | (1.3T) | (1.2T) | (416.6B) | (437.4B) | |
Cash And Short Term Investments | 414.3B | 621.5B | 654.5B | 458.3B | (27.9B) | (26.5B) | |
Net Receivables | 55.9B | 64.2B | 72.7B | 67.4B | 96.7B | 52.2B | |
Common Stock Shares Outstanding | 1.8B | 1.7B | 1.6B | 1.6B | 8.1B | 8.5B | |
Liabilities And Stockholders Equity | 2.4T | 2.8T | 3.2T | 3.1T | 3.2T | 1.7T | |
Non Current Liabilities Total | 240.9B | 262.9B | 280.1B | 2.5T | 1.9T | 991.7B | |
Other Current Assets | 1.3T | 1.2T | 1.2T | 133.8B | 981.0B | 811.0B | |
Other Stockholder Equity | 23.4B | 24.5B | (5.1B) | (21.2B) | (24.3B) | (23.1B) | |
Total Liab | 2.2T | 2.5T | 2.9T | 2.8T | 2.9T | 1.5T | |
Property Plant And Equipment Gross | 9.2B | 9.9B | 10.6B | 11B | 12.7B | 9.1B | |
Total Current Assets | 490.0B | 702.7B | 742.0B | 539.3B | 981.0B | 1.0T | |
Short Term Debt | 24.2B | 19.3B | 23.8B | 26.9B | 32.1B | 49.7B | |
Other Current Liab | (24.2B) | (19.3B) | (23.8B) | (26.9B) | 926.5B | 972.8B | |
Common Stock Total Equity | 91.7B | 86.0B | 62.4B | 59.0B | 67.8B | 94.8B | |
Accumulated Other Comprehensive Income | (6.6B) | (1.7B) | (5.1B) | (21.2B) | (17.8B) | (16.9B) | |
Common Stock | 91.7B | 86.0B | 62.4B | 59.0B | 56.4B | 93.5B | |
Other Liab | 5.3B | 11.1B | 6.7B | 5.6B | 5.1B | 4.8B | |
Accounts Payable | 182.8B | 181.8B | 2.1T | 224.1B | 201.7B | 352.2B | |
Other Assets | 1.2T | 1.2T | 1.1T | 1.3T | 275M | 261.3M | |
Long Term Debt | 240.9B | 262.9B | 280.1B | 276.0B | 302.2B | 282.8B | |
Short Term Investments | 245.6B | 234.5B | 299.2B | 220.8B | 266.6B | 236.1B | |
Inventory | 285M | 164M | 130M | 170M | (68.8B) | (65.4B) | |
Preferred Stock Total Equity | 23.4B | 24.5B | 24.7B | 28.4B | 32.7B | 17.3B | |
Intangible Assets | 1.7B | 1.6B | 2.2B | 2.1B | 1.9B | 1.8B | |
Property Plant Equipment | 10.6B | 11B | 10.8B | 11.5B | 13.2B | 11.1B | |
Retained Earnings Total Equity | 156.3B | 164.1B | 188.1B | 207.0B | 238.1B | 250.0B | |
Net Tangible Assets | 195.9B | 204.0B | 176.3B | 204.2B | 234.8B | 192.0B | |
Long Term Debt Total | 362.4B | 379.8B | 280.1B | 276.0B | 248.4B | 297.6B | |
Long Term Investments | 702.0B | 883.7B | 1.2T | 1.2T | 1.0T | 968.6B | |
Non Current Liabilities Other | 165.1B | 170.3B | 192.3B | 195.6B | 176.1B | 159.2B |
Bank of America Investors Sentiment
The influence of Bank of America'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 Bank. 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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to Bank of America's public news can be used to forecast risks associated with an investment in Bank. The trend in average sentiment can be used to explain how an investor holding Bank can time the market purely based on public headlines and social activities around Bank of America. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Bank of America's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Bank of America's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Bank of America's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Bank of America.
Bank of America Implied Volatility | 41.32 |
Bank of America'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 Bank of America'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 Bank of America stock will not fluctuate a lot when Bank of America'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 Bank of America 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, Bank of America's short interest history, or implied volatility extrapolated from Bank of America options trading.
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
0.97 | C | Citigroup Financial Report 12th of July 2024 | PairCorr |
0.95 | CM | Canadian Imperial Bank Financial Report 23rd of May 2024 | PairCorr |
0.9 | NU | Nu Holdings Financial Report 20th of May 2024 | PairCorr |
0.76 | RY | Royal Bank Financial Report 23rd of May 2024 | PairCorr |
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 instruments. 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.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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 (0.19) | Dividend Share 0.94 | Earnings Share 2.9 | Revenue Per Share 11.664 | Quarterly Revenue Growth (0.03) |
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.