Bank of America Valuation
| BAC Stock | 41.97 0.10 0.24% |
At this time, the firm appears to be fairly valued. Verizon Communications shows a prevailing Real Value of USD41.01 per share. The current price of the firm is USD41.97. Our model approximates the value of Verizon Communications from analyzing the firm fundamentals such as Current Valuation of 312.38 B, return on equity of 0.25, and Operating Margin of 0.21 % as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Bank of America's price fluctuation is very steady at this time. Calculation of the real value of Verizon Communications 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 41.97, 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 41.97 | Real 41.01 | Hype 42.07 | Naive 43.2 |
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 Verizon Communications 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 Total Value Analysis
Verizon Communications is currently forecasted to have takeover price of 312.38 B with market capitalization of 156.87 B, debt of 140.68 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Bank of America fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
312.38 B | 156.87 B | 140.68 B |
Bank of America Investor Information
About 63.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. Verizon Communications last dividend was issued on the 9th of January 2023. The entity had 2:1 split on the 30th of June 1998. Based on the key measurements obtained from Bank of America's financial statements, Verizon Communications is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Bank of America Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bank of America has an asset utilization ratio of 36.04 percent. This implies that the Company is making USD0.36 for each dollar of assets. An increasing asset utilization means that Verizon Communications is more efficient with each dollar of assets it utilizes for everyday operations.Bank of America Ownership Allocation
Bank of America holds a total of 4.2 Billion outstanding shares. Over half of Bank of America's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Bank of America. Please watch out for any change in the institutional holdings of Verizon Communications as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Bank of America Profitability Analysis
The company reported the revenue of 136.84 B. Net Income was 21.75 B with profit before overhead, payroll, taxes, and interest of 77.7 B.About Bank of America Valuation
The 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 Verizon Communications 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.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.
Additional 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.