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BAC

Bank of America Corporation
$55.97SellTarget $38.13Report: Jan 14, 2026Financial ServicesBanks - DiversifiedMature Compounder

Price History

Pelican View
Current$55.97-31.9%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$38.13
(32% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A

Key Metrics

Market Data
52 Week High$57.55
52 Week Low$33.07
Avg. 3 Month Volume38.37M
Efficiency
LTM Gross Margin100.0%
LTM EBITDA Margin32.3%
LTM EBIT Margin30.2%
LTM Operating Margin35.6%
LTM ROA0.8%
LTM ROE9.5%
LTM ROIC0.9%
LTM ROCEN/A
Capital Structure
Market Cap (MM)$383.7B
Enterprise Value (MM)$511.5B
Shares Outstanding7.47B
Total Debt (MM)$708.27B
Cash & Equivalents (MM)$580.52B
LTM Net Debt (MM)$127.75B
LTM Net Debt/EBITDA3.7x
Growth
TTM Rev. Growth8.9%
Last 3-Yr Rev. CAGR5.1%
Last 3-Yr EBITDA CAGR1.8%
Last 3-Yr EPS CAGR5.4%
Valuation
Street Target Price$60.33
LTM EV/Revenue4.8x
LTM EV/Gross Profit4.8x
LTM EV/EBIT15.8x
LTM EV/EBITDA14.8x
LTM P/E13.6x
LTM EV/FCF8.3x
LTM P/FCF6.2x
LTM P/TB0.1x
LTM P/B1.3x
Dividend YieldN/A
Payout Ratio28.5%
About the Company

Bank of America Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. It is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments. The company provides a full range of banking, investing, asset management, and other financial and risk management products and services through multiple distribution channels.

Revenue Generation

The company generates revenue primarily through net interest income, which is the difference between interest earned on assets (such as loans and debt securities) and interest paid on liabilities (such as deposits and borrowings). It also generates significant noninterest income from fees and commissions related to asset management, brokerage, investment banking, trading, and transaction processing services. Its primary geographic market is the United States, with additional operations in Europe, the Middle East, Africa, Asia, and Latin America.

Investment Thesis
Executive SummaryBank of America is currently trading at 52-week highs, buoyed by a market narrative that the Net Interest Income (NII) trough is passed and a multi-year growth cycle is beginning. However, our analysis suggests the market is significantly overestimating the company's intrinsic value by ignoring the structural drag of a Peak technology investment cycle, where $4 billion in annual spend is required simply to maintain its moat. This valuation disconnect is further highlighted by the recent 6.1% stake reduction by Berkshire Hathaway, signaling a shift in conviction from the company's most significant long-term shareholder.

Recent Activity

2025-04-09+6.05%
Market/Sector Move +6.05%
2025-04-04-7.60%
Market/Sector Move -7.60%
2024-07-16+5.35%
Bank of America reported Q2 2024 net income of $6.9 billion ($0.83 per diluted share), down from $7.4 billion ($0.88 per share) in Q2 2023.

Valuation Table

MethodImplied ValueWeightWeighted Value
DCF$54.4670%$38.12
Comps$0.0330%$0.01
Total Weighted$38.13