Bank of America Valuation
| BAC-PN Preferred Stock | USD 22.79 0.23 1.02% |
At this time, the firm appears to be fairly valued. Bank of America shows a prevailing Real Value of $22.77 per share. The current price of the firm is $22.79. Our model approximates the value of Bank of America from analyzing the firm fundamentals such as Current Valuation of (89.01 B), return on equity of 0.1, and Profit Margin of 0.30 % 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 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.
Since Bank of America is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Bank Preferred 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 22.79 | Real 22.77 | Hype 22.56 | Naive 22.44 |
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 (89.01 B) with market capitalization of (89.01 B), debt of 275.98 B, and cash on hands of 932.64 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 |
(89.01 B) | (89.01 B) | 275.98 B | 932.64 B |
Bank of America Investor Information
About 16.0% of the company shares are held by institutions such as insurance companies. The company last dividend was issued on the 28th of February 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 recent return on assets of Bank suggests 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.About Bank of America Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Bank of America. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Bank of America based exclusively on its fundamental and basic technical indicators. By analyzing Bank of America's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Bank of America's intrinsic value. 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. Bank of America Corporation was founded in 1784 and is headquartered 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 211225 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.
Bank of America Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 8 B | |
| Quarterly Earnings Growth Y O Y | 0.069 | |
| Retained Earnings | 207 B |
Other Information on Investing in Bank Preferred Stock
Bank of America financial ratios help investors to determine whether Bank Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Bank with respect to the benefits of owning Bank of America security.