Bank of America

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for Bank of America is $42.72. At the current market price of $52.90, BAC trades 19.2% above its calculated fair value.

Bank of America is currently overvalued based on our valuation model. The stock trades at $52.90, which is 19.2% above the fair price of $42.72. The P/E ratio of 13.8x is a key metric in the valuation.

With a 20% margin of safety applied to the fair price of $42.72, the conservative entry level for BAC is $34.18. At the current market price of $52.90, the stock trades 35.4% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

We update fair price calculations for BAC daily after market close. The current fair price of $42.72 incorporates the latest market data and sector multiples.

BAC's fair price of $42.72 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 13.8x, ROE of 10.2%, and dividend yield of 2.62%.

At $52.90, BAC trades 19.2% above our fair value estimate of $42.72. The stock is currently overvalued. ROE stands at 10.2% (average). Fair Price Index provides valuation data — always do your own research before investing.

BAC has a dividend yield of 2.62%.