Bank of America Corporation

OVERVALUEDBML-PG · NYSE · Financial Services
BML-PG·NYSE·Financial Services
OVERVALUED
Bank of America Corporation
42.9%downside
MARKET PRICE
$19.06
FAIR PRICE
$10.89
MARGIN
$8.17
UNDERVALUEDFAIROVERVALUED
P/E RATIO
4.7x
DIV. YIELD
6.59%
ROE
10.5%
MARKET CAP
$318B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

42.9%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$19.06

FAIR PRICE

$10.89

MARGIN

$8.17

UNDERVALUEDFAIROVERVALUED

P/E Ratio

4.7x

What is P/E? →

Div. Yield

6.59%

ROE

10.5%

Average

Market Cap

$318B

Mega-cap

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FPI RATING

4.8/ 10

Attractive valuation and consistent growth trajectory, but elevated debt levels.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$8.71CONSERVATIVE ENTRY
$10.89FAIR PRICE
$19.06MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$8.71

Fair price × 0.80

DISTANCE

54.3%

Price to entry level

At the current price of $19.06, BML-PG trades 54.3% above the conservative entry level of $8.71. This entry level represents a 20% margin of safety below the calculated fair price of $10.89 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate BML-PG's fair price

Bank of America Corporation's fair price of $10.89 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $19.06, BML-PG trades 42.9% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting BML-PG's risk profile.

RELATIVE · 30%

Comparing BML-PG's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for BML-PG, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate BML-PG's fair value with your own inputs.

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FAQ

What is the fair price of BML-PG?+

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 Corporation is $10.89. At the current market price of $19.06, BML-PG trades 42.9% above its calculated fair value.

Is BML-PG overvalued or undervalued?+

Bank of America Corporation is currently overvalued based on our valuation model. The stock trades at $19.06, which is 42.9% above the fair price of $10.89. The P/E ratio of 4.7x is a key metric in the valuation.

What is the margin of safety for BML-PG?+

With a 20% margin of safety applied to the fair price of $10.89, the conservative entry level for BML-PG is $8.71. At the current market price of $19.06, the stock trades 54.3% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is BML-PG's fair price updated?+

We update fair price calculations for BML-PG daily after market close. The current fair price of $10.89 incorporates the latest market data and sector multiples.

What factors affect BML-PG's fair price calculation?+

BML-PG's fair price of $10.89 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 4.7x, ROE of 10.5%, and dividend yield of 6.59%.

Is BML-PG a good buy right now?+

At $19.06, BML-PG trades 42.9% above our fair value estimate of $10.89. The stock is currently overvalued. ROE stands at 10.5% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does BML-PG pay dividends?+

BML-PG has a dividend yield of 6.59%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.