Highly Regarded

Is Bank of America Corporation (BAC) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Financials sector peers in our coverage

37% Discount TTM fundamentals · sector averages from covered peers

BAC trades at 16.4× TTM earnings — a 37% discount to its Financials sector average of 26.1× in our coverage.

The Numbers

P/E (TTM)

16.4×

Sector avg: 26.1×

P/S (TTM)

4.0×

Sector avg: 9.0×

Market Cap

$431.95B

EPS (TTM): $3.66

Revenue (TTM)

$107.26B

Net income: $29.65B

Financials Peer Comparison

How BAC's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
BAC This page $59.89 16.4×
BRK.B $506.66 —
V $357.21 —
MA $533.36 34.1×
MS $222.08 22.8×
GS $1054.88 21.4×

Is the Discount Justified?

July 6, 2026

Bank of America's P/E of 16.3x is below the Financials sector average of 23.6x. The company reported strong Q1 2026 results, with EPS of $1.12, up from $0.91 in Q1 2025, and revenue of $28.9 billion, a 12% year-over-year increase. Net income rose 17% year-over-year, and the profit margin expanded to 28%. Net interest income grew 9% year-over-year in Q1 2026, leading to an upward revision of full-year NII growth guidance to 6-8%. The bank returned $9.2 billion to shareholders in Q1 2026 through dividends and share repurchases. While revenue growth is forecast at 6.1% annually over the next three years, this trails the broader Banks industry forecast of 8.5%. The current P/E is below its "fair P/E ratio" of 16.0x, suggesting a potential discount.

Sources

Frequently Asked Questions

Is BAC overvalued or undervalued?
On trailing-twelve-month earnings, BAC trades at 16.4x versus a Financials sector average of 26.1x in our coverage — a 37.3% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing BAC with its own Financials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Financials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

Keep Digging on BAC

Bank of America Corporation Overview

Price, chart, analysis & financials

BAC: Overbought or Oversold?

Updated daily

BAC: Why Is It Moving?

Updated daily

BAC: Price Prediction

Updated daily

Same question, Financials peers

BRK.B JPM MA V GS MS