On 12 Nov 2026 our base value for Bank of America is $42.62 a share, 15.6% below its $50.51 close; 0 of 2 valuation methods put it above the price.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | — | — | not used for banks and lenders: deposits and loans are the business, so free cash flow does not describe it; see tangible book |
| Exit multiple (P/E) | $37.34 | -26.1% | earnings per share $4.37 valued at 11.6× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | $47.90 | -5.2% | tangible book $31.78 a share at 1.507× |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $4.37 |
| Year 1 | 3.40% | $4.52 |
| Year 2 | 3.28% | $4.66 |
| Year 3 | 3.20% | $4.81 |
| Year 4 | 3.14% | $4.96 |
| Year 5 | 3.10% | $5.12 |
| Earnings per share in year 5 | $5.12 |
| Exit P/E (the stock's own median P/E) | 11.6× |
| Value in 5 years = earnings × P/E | $59.37 |
| Discounted at 9.72% over 5 years: ÷ 1.5901 | $37.34 |
| Shareholders' equity | $303.24bn |
| Less goodwill | $69.02bn |
| Less other intangibles | $1.80bn |
| Tangible equity | $232.42bn |
| Shares | 7.31bn |
| Tangible book per share | $31.78 |
| Profit attributable to shareholders | $30.51bn |
| Return on tangible equity = profit ÷ tangible equity | 13.13% |
| Cost of equity (the discount rate) | 9.72% |
| Growth (the terminal rate) | 3% |
| Justified price to tangible book = (13.13% − 3%) ÷ (9.72% − 3%) | 1.51× |
| Value per share = multiple × tangible book per share | $47.90 |
The base value is the average of the methods kept in it:
| Method | Value |
|---|---|
| Exit multiple (P/E) | $37.34 |
| Tangible book | $47.90 |
($37.34 + $47.90) ÷ 2 = $42.62
Base value $42.62 a share
One-year price simulation: a 10% chance the price is below $39.83 and a 10% chance it is above $73.27 in a year; a 62% chance it is higher than today's $50.51, from 23.66% volatility. The simulation assumes the price drifts up at our discount rate of 9.72% a year.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $53.75 | $43.14 |
| 9 Oct 2026 | $54.32 | $42.57 |
| 16 Oct 2026 | $51.23 | $44.88 |
| 23 Oct 2026 | $50.56 | $45.04 |
| 30 Oct 2026 | $50.01 | $45.56 |
| 6 Nov 2026 | $49.42 | $43.82 |
| 12 Nov 2026 | $50.51 | $42.62 |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
Run a full Desk Run on BAC · Bank of America company page · Call and put prices