Bank of America Corp (BAC) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Bank of America Corp stock $42.16, price $49.76, that is 15.3% below the price, quality 60 out of 100. Rating: overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $23.42 – $64.48 · fair‑value band $38.10 – $53.30 · the $49.76 price screens above the $42.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
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It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans.
The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services.
The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, and underwriting and advisory services.
The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products.
Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.
Stock analysis
Bank of America Corp (BAC) currently trades at $49.76, while our model-based Fair Value estimate is $42.16, 15% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $46.53 per share, and 1 of the 6 models we run sit above the $49.76 price.
Bear case: the Dividend Discount group reads lowest at $21.42, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $38.10 (bear) to $53.30 (bull), the price of $49.76 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Bank of America Corp reported revenue of $192B in FY2025 versus $89.1B in FY2021, a compound +21.1%/yr. Reported net income was $30.5B in FY2025, compounding −1.2%/yr from FY2021.
Key figures
Market cap $363B Mega · P/E ratio 12.1 · P/S ratio 3.16 · EPS (TTM) $4.12 · Dividend yield 2.3% · Net margin 28.1% · Return on equity 10.7% · Return on assets (EBIT) 1.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 69 out of 100 (medium confidence).
What moves the price
The share trades about 23% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −18% fair-value upside, at −15%, BAC screens cheaper than that median.
Fair Value models
Bear$38.10Fair Value $42.16Bull$53.30
Price $49.76 · Downside -15.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($2.51 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleGeoffrey S GreenerChief Risk Officer126,756 shares at $53.01$6.7MMay 5, 2026
SaleBernard A MensahPresident, International94,000 shares at $46.94$4.4MMar 12, 2026
SaleSheri B. BronsteinChief People Officer60,000 shares at $49.91$3.0MMar 5, 2026
SaleThomas M ScrivenerChief Operations Executive50,000 shares at $49.82$2.5MMar 5, 2026
SaleJames P DeMareCo-President83,832 shares at $50.00$4.2MMar 4, 2026
SaleDean C AthanasiaCo-President136,558 shares at $50.21$6.9MMar 3, 2026
SaleAlastair M BorthwickExecutive Vice President & CFO68,000 shares at $50.24$3.4MFeb 27, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.75/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.9%
Start year 2020 (pandemic). Over 10 years: +9.2% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+10.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.0%
Dividend (yield on the price)2.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.8% vs 11.1%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.26% → 20%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−4.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −6.8% a year for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
AI conclusion: Scale in its consumer and commercial banking base supports steady lending and deposit growth with solid net interest income gains, yet regulatory compliance burdens and market-sensitive trading fees limit durability.
Main risk: Agentic AI assistants like Meta's Muse could automatically move customers' idle cash to higher-yield investments, reducing Bank of America's net interest income from deposits.
Bull case: Bank of America could develop its own AI systems to retain customer deposits and improve compliance efficiency, turning risks into competitive advantages.
Bear case: Persistent AI-driven deposit shifts combined with neobank competition and regulatory burdens could pressure margins and force costly restructuring.
Bank of America shows steady expansion in its core lending and deposit franchise with net interest income on track for solid gains ahead. At the same time regulatory compliance issues continue to weigh on results while trading and investment banking fees remain sensitive to market swings. Our models currently see the stock as overvalued. Will the durable advantages of its consumer and commercial banking base prove more lasting than the periodic setbacks in fees and oversight?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Diversified · 46 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−15.3% · Above median
Profitability
Return on equity (12 months)10.7% · Below median
Return on assets0.9% · Above median
Net margin (12 months)28.1% · Below median
Operating margin (12 months)31.3% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)7.1% · Below median
Dividend yield (12 months)2.3% · Below median
Balance sheet
Debt / equity1.05× · Below median
Valuation Multiplesvs Banks - Diversified median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Bank of America Corp Fair Value". https://www.fairvalue-calculator.com/stock/BAC
Frequently asked questions
Is Bank of America Corp (BAC) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $42.16 versus a price of $49.76, about 15% lower (overvalued).
What is the fair value of BAC?
Our model-based fair value for Bank of America Corp is $42.16 (as of Nov 5, 2026), built from audited fundamentals. The current price: $49.76.
What is the quality score of BAC?
Bank of America Corp has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Bank of America Corp (BAC)?
Our model-based price target is the fair value of $42.16 (as of Nov 5, 2026) from 6 valuation models. Cautious scenario $38.10, optimistic scenario $53.30. It is a calculation from audited fundamentals, not an analyst target.
What is the Bank of America Corp stock forecast for 2026?
Our models put fair value at $42.16, about 15% lower versus a price of $49.76 (overvalued). Cautious scenario $38.10, optimistic scenario $53.30. The calculation is refreshed regularly with new filings.
What is the revenue of Bank of America Corp (BAC)?
Bank of America Corp reported trailing-twelve-month revenue of about $115B (latest available figure, as of Nov 5, 2026).
Does Bank of America Corp pay a dividend?
Bank of America Corp currently shows a dividend yield of 2.33% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Bank of America Corp (BAC)?
For today's price to be fair in a discounted-cash-flow model, Bank of America Corp would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.9 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of BAC use?
Our models discount Bank of America Corp at 9.2 %: a base by market capitalisation (mega), damped by beta 1.21, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bank of America Corp that is less than minus 40 % per year a year over ten years, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has Bank of America Corp (BAC) delivered so far?
Over the past 5 years revenue at Bank of America Corp grew +20.9 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bank of America Corp (BAC) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Bank of America Corp (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bank of America Corp (BAC)?
The free-cash-flow yield on the price is 3.48 %: that much free cash flow Bank of America Corp produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bank of America Corp (BAC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bank of America Corp it is $42.16 per share (as of Nov 5, 2026), against a price of $49.76. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Bank of America Corp stock overvalued or undervalued in 2026?
As of Nov 5, 2026, BAC trades above its calculated fair value: price $49.76, fair value $42.16, a gap of about −15% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BAC?
No. The price is what the market pays today ($49.76); the fair value is what the company's own numbers justify ($42.16). For Bank of America Corp the two are $7.60 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bank of America Corp worth?
The market values Bank of America Corp at about $363B (market capitalisation, as of Nov 5, 2026). Per share that is $49.76; our models calculate a fair value of $42.16 per share.
What do the bullish and bearish scenarios say about BAC?
Our models span a range for Bank of America Corp: cautious scenario $38.10, base $42.16, optimistic $53.30 per share (as of Nov 5, 2026, price $49.76). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BAC?
Bank of America Corp trades at a price-to-earnings ratio of 12.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $42.16 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 10.7 (reported for FY2025: 12.3). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 5 of the years ex one-offs: 12.3. Other multiples: PEG 0.8, P/B 1.2, P/S 3.2, EV/EBITDA 11.2.
What is the PEG ratio of BAC?
The PEG ratio of Bank of America Corp is 0.85 (P/E divided by earnings growth, as of Nov 5, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Bank of America Corp (BAC)?
Balance-sheet figures for Bank of America Corp (as of Nov 5, 2026): return on equity 10.7%, debt of 1.05 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is BAC from its 52-week high?
Bank of America Corp trades at $49.76, about 23% below its 52-week high of $64.48 and 8% above the low of $46.24 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $42.16 is for.
Which stocks are comparable to Bank of America Corp?
From the same area (Financial Services) we also value JPMorgan Chase & Co, China Construction Bank Corporation, Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bank of America Corp stock attractive at the current price?
The data as of Nov 5, 2026: price $49.76, calculated fair value $42.16 (−15%), Quality Score 60/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BAC calculated?
We run Bank of America Corp through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $42.16, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Bank of America Corp itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bank of America Corp (BAC)?
The closing price on Nov 5, 2026 was $49.76. Our model-based fair value is $42.16, about 15% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bank of America Corp right now?
Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Bank of America Corp (BAC) come from?
Earnings per share at Bank of America Corp grew +13.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.0 %, EBIT margin −1.7 %, tax rate +2.5 %, residual (interest, one-offs) +0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bank of America Corp
How large is the market capitalisation of Bank of America Corp (BAC)?
The market capitalisation of Bank of America Corp is $363B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bank of America Corp (BAC)?
The price-to-sales ratio of Bank of America Corp is 3.16 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bank of America Corp (BAC)?
Earnings per share at Bank of America Corp are $4.12 (price ÷ EPS = P/E 12.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bank of America Corp (BAC)?
The dividend yield of Bank of America Corp is 2.3% (payout 24.4%, on adjusted earnings, reported 28.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bank of America Corp (BAC)?
The net margin of Bank of America Corp is 28.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bank of America Corp (BAC)?
The return on equity (ROE) of Bank of America Corp is 10.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bank of America Corp (BAC)?
On an EBIT basis the return on assets of Bank of America Corp is 1.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bank of America Corp (BAC)?
The operating margin of Bank of America Corp is 31.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bank of America Corp (BAC)?
Revenue at Bank of America Corp is growing +7.1% versus a year earlier (3y avg +26.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bank of America Corp (BAC)?
Earnings per share at Bank of America Corp are growing −14.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Bank of America Corp (BAC) carry?
The net debt of Bank of America Corp is $134B (fiscal year 2025, ≈ 10.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026