Bank of America Valuation
| BAC-PQ Preferred Stock | USD 18.78 0.02 0.11% |
At this time, the firm appears to be overvalued. Bank of America shows a prevailing Real Value of $15.21 per share. The current price of the firm is $18.78. Our model approximates the value of Bank of America from analyzing the firm fundamentals such as Profit Margin of 0.31 %, current valuation of (7.86 B), and Return On Equity of 0.11 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
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.
Bank of America's intrinsic value may or may not be the same as its current market price of 18.78, 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 18.78 | Real 15.21 | Hype 18.78 | Naive 18.57 |
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, news, and other external factors that may influence Bank of America's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Bank of America helps investors to forecast how Bank preferred 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 Total Value Analysis
Bank of America is currently forecasted to have takeover price of (7.86 B) with market capitalization of (7.86 B), debt of 302.91 B, and cash on hands of 714.18 B. The negative valuation of Bank of America may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should thoroughly investigate all of the Bank of America fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(7.86 B) | (7.86 B) | 302.91 B | 714.18 B |
Bank of America Investor Information
The company last dividend was issued on the 31st of July 2023. Based on the key measurements obtained from Bank of America's financial statements, Bank of America is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in December.Bank of America Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Bank connotes not a very effective usage of assets in November.Bank of America Profitability Analysis
The company reported the revenue of 94.95 B. Net Income was 27.53 B with profit before overhead, payroll, taxes, and interest of 92.41 B.Bank of America Past Distributions to stockholders
About Bank of America Valuation
The preferred stock valuation mechanism determines Bank of America's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Bank of America based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Bank of America. We calculate exposure to Bank of America's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Bank of America's related companies.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. BANK OF AMERICA operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 210000 people.
8 Steps to conduct Bank of America's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Bank of America'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 Bank of America's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Bank of America's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Bank of America's revenue streams: Identify Bank of America's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Bank of America's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Bank of America's growth potential: Evaluate Bank of America's management, business model, and growth potential.
- Determine Bank of America'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 Bank of America'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 Bank of America represents a small ownership stake in the entity. As a stockholder of Bank, 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.
Bank of America Dividends Analysis For Valuation
Please note that Bank of America has scaled down on payment of dividends at this time.
There are various types of dividends Bank of America 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 Bank 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 Bank pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Bank of America by the value of the dividends paid out.
Bank of America Growth Indicators
Investing in growth stocks can be very risky. If the company such as Bank of America 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 |
Additional Tools for Bank Preferred 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.