Bank of America (BAC)
Financials · $394B market cap · SEC CIK 0000070858
fundamentals score out of 100
Next reports on Oct 14, 2026, before the open, with analysts expecting $1.18 in earnings per share.
The case for BAC
- Cheap on earnings at 11.7×, well under the market's usual 20×.
- 30% of revenue drops through to net profit.
- Earnings per share up 25.8%.
- Pays a 3.2% dividend while you wait.
- A PEG of 0.45: a P/E of 11.7× is low for EPS growing 26%.
The case against
- Growth is weak (41/100): EPS +25.8%, +4.7% a year over five years.
- Weakest against its peers: return on equity of 11% is lower than 74% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 74 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 41 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 57 |
| Stabilityhow violently it moves, what it owes and what it pays you | 56 |
- Its one-year revenue change (+99%) is far out of line with its five-year trend (+5% a year). In the Financials sector that is usually interest income swinging with rates rather than growth, so only the five-year figure is used.
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 74 Financials companies.
Key numbers
| Price / earnings | 11.7× |
|---|---|
| Price / book | 1.33× |
| Price / sales | 2.3× |
| Revenue growth (YoY) | +99.4% (not used: out of line with the five-year +4.7% a year) |
| EPS growth (YoY) | +25.8% |
| Gross margin | — |
| Operating margin | 33% |
| Net margin | 30% |
| Return on equity | 11% |
| Debt / equity | 2.43× |
| Current ratio | n/a |
| Dividend yield | 3.23% |
| Beta | 1.20 |
| 52-week range | $46.12 – $65.23 |
| Position in that range | 53% of the way up |
| 3-month return | +3.1% |
| 1-year return | +10.9% |
Five years of financials, as filed
Pulled from Bank of America's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $113B | $106B | $103B | $95.0B | $89.1B |
| Net income | $30.5B | $27.0B | $26.3B | $27.5B | $32.0B |
| Operating cash flow | $12.6B | -$8.8B | $45.0B | -$6.3B | -$7.2B |
| Total assets | $3.41T | $3.26T | $3.18T | $3.05T | $3.17T |
| Total liabilities | $3.11T | $2.97T | $2.89T | $2.78T | $2.90T |
| Shareholder equity | $303B | $294B | $290B | $273B | $270B |
| Cash | $232B | $290B | $333B | $230B | $348B |
| Long-term debt | $318B | $283B | $302B | $276B | $280B |
| Net margin | 27.0% | 25.5% | 25.6% | 29.0% | 35.9% |
| Diluted shares | 7.7B | 7.9B | 8.1B | 8.2B | 8.6B |
Share count is down 10.3% over 4 years. Buybacks have been shrinking the pie.
What Bank of America says it does
beginning on page 2, MD&A beginning on page 26 and Notes to Consolidated Financial Statements beginning on page 95. Market We may be adversely affected by the financial markets, fiscal, monetary, and regulatory policies, and economic conditions. General economic, political, social and health conditions, including any prolonged economic downturn that may occur, in the U.S. and abroad affect financial markets and our businesses. In particular, global markets may be affected by the level and volatility of interest rates, availability and market conditions of financing, changes in gross domestic product (GDP), economic growth or its sustainability, inflation, supply chain disruptions, consumer spending, employment levels, labor market conditions, wage stagnation, federal government shutdowns, energy prices, home prices, commercial property values, bankruptcies and a default by a significant market participant or class of counterparties,…
Risk factors BAC lists in its 10-K
- Board of Governors of the Federal Reserve System
- Global Wealth & Investment Management (GWIM)
- Note 1 – Summary of Significant Accounting Principles
- Summary Income Statement and Selected Financial Data
- Total revenue, net of interest expense
- Net income applicable to common shareholders
- Total liabilities and shareholders’ equity
- Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell
- Allowance for Loan and Lease Losses
- Federal Funds Purchased and Securities Loaned or Sold Under Agreements to Repurchase
- Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash
- Total loss-absorbing capacity and long-term debt metrics
- Net interest income/yield on earning assets
- Analysis of Changes in Net Interest Income - FTE Basis