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Bank of America Corp BAC

Morningstar Rating
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Stock XNYS Rating as of
$40.30 +0.52 (1.31%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Bank of America Should Perform Relatively Well as Interest Rates Decline; Valuation Increased

Suryansh Sharma, Eric Compton

After years of issues following the financial crisis of 2008, Bank of America has emerged as one of the preeminent US banking franchises. The bank has one of the best retail branch networks and overall retail franchises in the United States, is a Tier 1 investment bank, is a top four US credit card issuer, is a top three US acquirer, has a solid commercial banking franchise, and owns the Merrill Lynch franchise, which has turned into one of the leading US brokerage and advisor firms.

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Price vs Fair Value

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BAC is trading at a 375% premium.
Price
$39.77
Fair Value
$43.00
Uncertainty
Medium
1-Star Price
$87.60
5-Star Price
$75.20
Economic Moat
Cmss
Capital Allocation
Cfncqbfb

Bulls Say, Bears Say

Bulls

Bank of America is poised to succeed on a nationwide scale, and there seems to be no structural reason it can't be one of the strongest bank franchises going forward.

Bears

If the economy ever falters and rates are cut, watch out for the downside. Further, Bank of America is hamstrung with a longer duration securities portfolio, which will take years to mature away.

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News

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Trading Information

Previous Close Price
$39.78
Day Range
$39.86–40.34
52-Week Range
$24.97–40.34
Bid/Ask
$40.29 / $40.30
Market Cap
$314.69 Bil
Volume/Avg
2.4 Mil / 37.0 Mil

Key Statistics

Price/Earnings (Normalized)
13.33
Price/Sales
3.26
Dividend Yield (Trailing)
2.41%
Dividend Yield (Forward)
2.41%
Total Yield
3.98%

Company Profile

Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
212,000
Website
https://www.bankofamerica.com

Competitors

Valuation

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Metric
BAC
C
WFC
Price/Earnings (Normalized)
 13.3313.0111.44
Price/Book Value
 1.180.641.28
Price/Sales
 3.261.562.63
Price/Cash Flow
 8.634.487.70
Price/Earnings
BAC
C
WFC

Financial Strength

Metric
BAC
C
WFC
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
BAC
C
WFC
Return on Assets (Normalized)
 0.92%0.37%1.00%
Return on Equity (Normalized)
 11.28%4.74%11.72%
Return on Invested Capital (Normalized)
 ———
Return on Assets
BAC
C
WFC
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Banks - Diversified Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPMorgan Chase & Co
JPM
RbwpdtlghrCdfz$580.8 Bil
 Wells Fargo & Co
WFC
NbmznsjlPpszw$207.1 Bil
 HSBC Holdings PLC ADR
HSBC
SpxbhgnrtXmrv$161.0 Bil
 Royal Bank of Canada
RY
DbjnrhfpvdFzrdd$150.4 Bil
 Mitsubishi UFJ Financial Group Inc ADR
MUFG
YbjbnjyvgVtl$125.8 Bil
 Citigroup Inc
C
PxysckjrcWfzs$121.0 Bil
 The Toronto-Dominion Bank
TD
HnygvnpwfKygj$96.6 Bil
 UBS Group AG
UBS
TxvbsjlycKngww$94.4 Bil
 Banco Santander SA ADR
SAN
ZslsdXdgqcyk$71.8 Bil

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