Bank of America Valuation
| BML-PG Preferred Stock | USD 22.86 0.28 1.21% |
At this time, the firm appears to be overvalued. Bank of America shows a prevailing Real Value of $21.11 per share. The current price of the firm is $22.86. Our model approximates the value of Bank of America from analyzing the firm fundamentals such as Return On Equity of 0.1, profit margin of 0.30 %, and Current Valuation of (112.16 B) 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.
The fair value of the Bank preferred stock is determined by what a typical buyer is willing to pay for full or partial control of Bank of America. 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 22.86 | Real 21.11 | Hype 23.14 | Naive 23.53 |
The real value of Bank Preferred Stock, also known as its intrinsic value, is the underlying worth of Bank of America Company, which is reflected in its stock price. It is based on Bank of America's financial performance, growth prospects, management team, or industry conditions. 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, or news.
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 expected to have takeover price of (112.16 B) with market capitalization of 289.92 B, debt of 275.98 B, and cash on hands of 815.05 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 |
(112.16 B) | 289.92 B | 275.98 B | 815.05 B |
Bank of America Investor Information
The company last dividend was issued on the 14th 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 current return on assets of Bank implies not a very effective usage of assets in November.Bank of America Ownership Allocation
Bank of America holds a total of 9.81 Billion outstanding shares. Almost 98.44 percent of Bank of America outstanding shares are held by general public with 1.56 % by other corporate entities. 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 94.95 B. Net Income was 27.53 B with profit before overhead, payroll, taxes, and interest of 92.41 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Bank of America's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Bank of America and how it compares across the competition.
About Bank of America Valuation
The preferred stock valuation mechanism determines Bank of America's current worth on a weekly basis. Our 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 headquartered in Charlotte, North Carolina. Bank Of America operates under BanksDiversified classification in the United States and is traded on NYQ Exchange. It employs 211000 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
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 B | |
| Quarterly Earnings Growth Y O Y | 0.069 | |
| Retained Earnings | 207 B |
Complementary 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.
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