Bank Of America Stock Current Valuation
| BOFA Stock | 24.88 0.04 0.16% |
Valuation analysis of Bank of America helps investors to measure Bank of America's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Bank of America's Free Cash Flow is projected to decrease significantly based on the last few years of reporting. The current year's Begin Period Cash Flow is expected to grow to about 280 B, whereas Total Cashflows From Investing Activities is forecasted to decline to (3.1 B). Fundamental drivers impacting Bank of America's valuation include:
Price Book 1.3056 | Enterprise Value 187.5 B | Price Sales 5.3866 | Forward PE 12.6103 | Trailing PE 16.898 |
Undervalued
Today
Please note that Bank of America'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 Bank of America's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Bank stock is determined by what a typical buyer is willing to pay for full or partial control of Bank of America. Since Bank of America is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bank Stock. However, Bank of America'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. | Historical | Market 24.88 | Real 27.91 | Hype 24.82 | Naive 24.82 |
The real value of Bank Stock, also known as its intrinsic value, is the underlying worth of Bank of America Company, which is reflected in its stock price. It is based on Bank of America's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Bank of America's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Bank of America helps investors to forecast how Bank 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 Bank of America more accurately as focusing exclusively on Bank of America's fundamentals will not take into account other important factors: Bank of America Company Current Valuation Analysis
Bank of America's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Bank of America Current Valuation | 187.45 B |
Most of Bank of America's fundamental indicators, such as Current Valuation, 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.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Bank of America has a Current Valuation of 187.45 B. This is much higher than that of the Banks sector and significantly higher than that of the Financials industry. The current valuation for all Canada stocks is significantly lower than that of the firm.
Bank Current Valuation 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 Current Valuation 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 rated third in current valuation category among its peers.
Bank Fundamentals
| Return On Equity | 0.0809 | |||
| Return On Asset | 0.0073 | |||
| Profit Margin | 0.25 % | |||
| Operating Margin | 0.31 % | |||
| Current Valuation | 187.45 B | |||
| Shares Outstanding | 20.15 B | |||
| Price To Book | 1.31 X | |||
| Price To Sales | 5.39 X | |||
| Revenue | 98.58 B | |||
| Gross Profit | 92.41 B | |||
| Net Income | 26.52 B | |||
| Total Debt | 32.1 B | |||
| Book Value Per Share | 35.37 X | |||
| Cash Flow From Operations | 43.26 B | |||
| Earnings Per Share | 1.47 X | |||
| Price To Earnings To Growth | 2.07 X | |||
| Number Of Employees | 213 K | |||
| Beta | 1.33 | |||
| Market Capitalization | 509.71 B | |||
| Total Asset | 3.18 T | |||
| Retained Earnings | 224.67 B | |||
| Annual Yield | 0.02 % | |||
| Net Asset | 3.18 T | |||
| Last Dividend Paid | 0.98 |
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.
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
| 0.91 | FFH | Fairfax Financial | PairCorr |
| 0.83 | FFH-PM | Fairfax Financial | PairCorr |
| 0.64 | FFH-PJ | Fairfax Financial | PairCorr |
| 0.67 | FFH-PH | Fairfax Financial | PairCorr |
| 0.64 | FFH-PF | Fairfax Financial | 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 closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.