Bank of America Corporation (BAC) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Financial Services · Banks - Diversified
Is Bank of America Corporation a safe investment right now?
Bank of America Corporation is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $62.61 (Strong Buy Zone).
Why the Altman Z-Score does not apply to Bank of America Corporation
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Financial Services companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Financial Services companies is planned for a future update.
What is Bank of America Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $62.61 | 22 Wall Street analysts |
| Analyst High / Low | $71.00 / $57.50 | Range of analyst price targets |
| Price / Book | 1.37x | Current market valuation vs book value |
| Return on Equity | 10.6% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Bank of America Corporation
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Financial Services companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Financial Services companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Financial Services companies is planned for a future update.
Is Bank of America Corporation's dividend safe?
Can Bank of America Corporation afford its dividend?
Payout ratio is 27.4%. FCF covers the dividend -0.7x. 41 consecutive years of payments.
Bank of America Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $113.1B | $105.9B | $95.0B | Rising |
| Net Income | $30.5B | $27.0B | $27.5B | Rising |
| Free Cash Flow | $12.6B | −$8.8B | −$6.3B | Rising |
Recent events that affect our BAC analysis
BAC earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.10. Revenue estimate: $29.99B. Our current Fair Value: $62.61 — a significant beat or miss could shift this estimate.
BAC analyst consensus: 88% bullish (21 of 24 analysts)
6 Strong Buy, 15 Buy, 3 Hold, 0 Sell, 0 Strong Sell. Consensus target: $62.61 (17.9% upside). Compare with our independent Fair Value: $62.61.
BAC beat EPS estimates by 8.8%
Reported EPS: $1.11 vs estimate $1.02. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC paid $0.2800/share dividend
Dividend Safety Grade: B. Payout ratio: 27.4%.
BAC filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC beat EPS estimates by 2.2%
Reported EPS: $0.98 vs estimate $0.96. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC paid $0.2800/share dividend
Dividend Safety Grade: B. Payout ratio: 27.4%.
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC beat EPS estimates by 12.0%
Reported EPS: $1.06 vs estimate $0.95. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC paid $0.2800/share dividend
Dividend Safety Grade: B. Payout ratio: 27.4%.
BAC filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC beat EPS estimates by 3.7%
Reported EPS: $0.89 vs estimate $0.86. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC paid $0.2600/share dividend
Dividend Safety Grade: B. Payout ratio: 27.4%.
BAC filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BAC beat EPS estimates by 10.3%
Reported EPS: $0.90 vs estimate $0.82. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
BAC paid $0.2600/share dividend
Dividend Safety Grade: B. Payout ratio: 27.4%.
BAC beat EPS estimates by 6.7%
Reported EPS: $0.82 vs estimate $0.77. Earnings strength supports our Fair Value of $62.61 (17.9% above current price).
Common questions about Bank of America Corporation
What is Bank of America Corporation stock price today?
Bank of America Corporation (BAC) stock price is $53.12 as of the latest market close, traded on the NYSE exchange.
What does Bank of America Corporation do?
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. 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.
What is Bank of America Corporation market cap?
Bank of America Corporation has a market capitalization of $379.58B, classifying it as a mega-cap stock in the Financial Services sector.
What sector and industry is BAC in?
Bank of America Corporation operates in the Financial Services sector, specifically within the Banks - Diversified industry. It trades on the NYSE under the ticker symbol BAC.
Is BAC stock overvalued or undervalued?
Based on our valuation model, Bank of America Corporation trades 15.2% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $62.61
- Current Price: $53.12
- Valuation Zone: Strong Buy Zone
What is BAC stock forecast and analyst target price?
Based on 22 Wall Street analysts, the consensus price target for Bank of America Corporation is $62.61, implying upside of 17.9% from the current price.
- Analyst High Target: $71.00
- Analyst Low Target: $57.50
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Bank of America Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Bank of America Corporation:
- Revenue growth (current year est.): 7.0%
- EPS growth (current year est.): 17.3%
- Revenue growth (next year est.): 4.7%
- EPS growth (next year est.): 12.3%
What are Bank of America Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $113.1B | Rising |
| Net Income | $30.5B | Rising |
| Free Cash Flow | $12.6B | Rising |
What is BAC's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 13.2x
- Forward P/E (next 12 months est.): 10.5x
How volatile is BAC stock?
Bank of America Corporation has a beta of 1.24, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Bank of America Corporation have?
Bank of America Corporation's balance sheet shows:
- Total Cash: $1.05T
- Total Debt: $780.55B
- Net Cash Position: $265.11B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
Does Bank of America Corporation pay a dividend, and is it safe?
Yes, Bank of America Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.1%
- Payout Ratio: 27.4%
- Consecutive Years Paid: 41
- 5-Year Dividend Growth: -18.5%
- FairValueLabs Safety Grade: B
Is Bank of America Corporation financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like Bank of America Corporation. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Bank of America Corporation have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Financial Services companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is BAC's return on equity (ROE)?
Bank of America Corporation's return on equity is 10.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy BAC stock?
BAC shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol BAC
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is BAC a value stock or speculative?
FairValueLabs classifies Bank of America Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Bank of America Corporation?
The current CEO of Bank of America Corporation is Mr. Brian Thomas Moynihan.
What is BAC's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $4.02
- Forward EPS (next 12 months est.): $5.04
- Analyst consensus EPS (this year): $4.47
- Analyst consensus EPS (next year): $5.02
Other Financial Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
BAC analysis methodology: How we calculate fair value, Z-Scores, and moat ratings