B of A Valuation
| BAC Stock | USD 26.70 0.68 2.48% |
As of October 3, 2023, Free Cash Flow is expected to decline to about (6.5 B). In addition to that, Enterprise Value is expected to decline to about 273.1 B. Bank Of America shows a prevailing Real Value of $31.72 per share. The current price of the firm is $26.7. At this time, the firm appears to be undervalued. Our model approximates the value of Bank Of America from analyzing the firm fundamentals such as Return On Equity of 0.11, current valuation of 68.75 B, and Profit Margin of 0.31 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Dividend Share 0.88 | Beta 1.3838 | Enterprise Value 68.7 B | Net Debt 65.5 B | Accounts Payable 224.1 B |
B of A Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as B of A's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
Please note that B of A's price fluctuation is very steady at this time. Calculation of the real value of Bank Of America is based on 3 months time horizon. Increasing B of A's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Bank Of America is useful when determining the fair value of the BAC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of B of A. Since B of A is currently traded on the exchange, buyers and sellers on that exchange determine the market value of BAC Stock. However, B of A's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. Estimating the potential upside or downside of Bank Of America helps investors to forecast how BAC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of B of A more accurately as focusing exclusively on B of A's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use B of A's intrinsic value based on its ongoing forecasts of B of A's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against B of A's closest peers. When choosing an evaluation method for Bank Of America, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
B of A Investments |
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BAC Valuation Drivers Correlation
Many accounts on the financial statements of Bank Of America are highly interrelated and sometimes correlated. Consequently, when conducting BAC's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of BAC
Click cells to compare fundamentals
BAC Valuation Trend
Knowing B of A's actual value is paramount for traders to make sound investment determinations. B of A's real value is not only important for the investor to make better decisions but also for a more accurate overall view of B of A's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both B of A's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
BAC Market Cap
Bank Of America is number one stock in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 696.45 Billion. B of A totals roughly 217.57 Billion in market capitalization claiming about 31% of equities under Financials industry.B of A Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining B of A's current stock value. Our valuation model uses many indicators to compare B of A value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across B of A competition to find correlations between indicators driving B of A's intrinsic value. More Info.Bank Of America is number one stock in price to sales category among related companies. It is number one stock in price to book category among related companies fabricating about 0.39 of Price to Book per Price to Sales. The ratio of Price to Sales to Price to Book for Bank Of America is roughly 2.59 . The current year's Price to Book Value is expected to grow to 1.04. Comparative valuation analysis is a catch-all model that can be used if you cannot value B of A by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for B of A's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the B of A's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates B of A's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in B of A and how it compares across the competition.
About B of A Valuation
The stock valuation mechanism determines the current worth of Bank Of America on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Bank Of America. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bank Of America based exclusively on its fundamental and basic technical indicators. By analyzing B of A's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of B of A's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of B of A. We calculate exposure to B of A's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to B of A's related companies.| Last Reported | Projected for 2023 | ||
| Gross Profit | 95 B | 100.7 B | |
| Profit Margin | 0.27 | 0.25 |
B of A Quarterly Enterprise Value |
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8 Steps to conduct B of A's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates B of A's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct B of A's valuation analysis, follow these 8 steps:- Gather financial information: Obtain B of A's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine B of A's revenue streams: Identify B of A's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research B of A's industry and market trends, including the size of the market, growth rate, and competition.
- Establish B of A's growth potential: Evaluate B of A's management, business model, and growth potential.
- Determine B of A's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate B of A's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of B of A represents a small ownership stake in the entity. As a stockholder of BAC, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
B of A Dividends Analysis For Valuation
The current year's Preferred Dividends Income Statement Impact is expected to grow to about 1.6 B, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (8.8 B). . The current year's Price to Earnings Ratio is expected to grow to 13.39, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 180.8 B.
| Last Reported | Projected for 2023 | ||
| Preferred Dividends Income Statement Impact | 1.5 B | 1.6 B | |
| Payment of Dividends and Other Cash Distributions | -8.6 B | -8.8 B | |
| Dividend Yield | 0.026 | 0.022 | |
| Dividends per Basic Common Share | 0.86 | 0.69 |
There are various types of dividends B of A can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of BAC shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Bank Of America directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When BAC pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of B of A by the value of the dividends paid out.
B of A Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as B of A does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 8.6 B | |
| Quarterly Earnings Growth Y O Y | 0.205 | |
| Forward Price Earnings | 8.7489 |
B of A Current Valuation Indicators
Valuation refers to the process of determining the present value of Bank Of America and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value BAC we look at many different elements of the entity such as BAC's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. B of A's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final B of A's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as B of A, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use B of A's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes B of A's worth.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. 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 the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Complementary Tools for BAC Stock analysis
When running B of A's 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 the 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 BAC 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 0.205 | Dividend Share 0.88 | Earnings Share 3.48 | Revenue Per Share 11.942 | Quarterly Revenue Growth 0.086 |
The market value of Bank Of America is measured differently than its book value, which is the value of BAC 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 if B of A is a good investment 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.