Bank of America Corporation (BAC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-39.5%

$30.39

vs $50.24 price

Levered DCF

-$3.80

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.27

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.18×	13.52×	10.86×	10.32×	12.36×	16.12×	12.71×	9.33×
P/B	1.34×	1.15×	0.93×	0.98×	1.4×	0.97×	1.25×	0.94×
P/S	2.11×	1.77×	1.57×	2.34×	4.03×	2.83×	2.91×	2.27×
EV / EBITDA	13.48×	22.33×	18×	16.08×	14.46×	15.88×	17.17×	13.66×
Gross margin	56.1%	49.9%	54.8%	80.3%	99.8%	79.2%	77.2%	80.0%
Operating margin	19.7%	15.2%	16.5%	26.9%	36.2%	20.3%	28.8%	31.5%
Net margin	15.9%	14.1%	15.4%	23.9%	34.1%	19.1%	24.1%	25.7%
Current ratio	0.42×	0.3×	0.3×	0.22×	0.29×	0.31×	0.26×	0.28×
Debt / equity	1.21×	2.23×	2.12×	1.82×	1.84×	1.66×	1.62×	1.65×
Interest coverage	0.48×	0.32×	0.39×	1.54×	7.17×	2.31×	1.47×	1.86×
Dividend yield	2.4%	2.8%	3.4%	3.2%	2.1%	2.9%	1.8%	2.8%
Payout ratio	31.3%	35.0%	34.3%	31.2%	25.2%	43.2%	21.6%	24.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.1%	9.2%	9.1%	10.1%	11.8%	6.6%	10.4%	10.6%
Return on invested capital	3.4%	2.3%	2.3%	3.4%	4.0%	2.3%	3.7%	3.8%
Return on assets	0.9%	0.8%	0.8%	0.9%	1.0%	0.6%	1.1%	1.2%
Free cash flow yield	3.1%	-2.6%	16.6%	-2.4%	-1.9%	14.3%	18.7%	15.9%
Earnings yield	7.5%	8.0%	9.8%	10.2%	8.5%	6.7%	8.3%	11.3%
Enterprise value	$539.1B	$702B	$547.1B	$529.8B	$518.7B	$330.9B	$592.2B	$500.4B
Net debt / EBITDA	3.35×	11.51×	9.1×	7.92×	3.93×	3.15×	7.58×	6.87×
Cash conversion cycle (days)	197	186	205	257	338	316	243	294