Bank of America Corporation (BAC) Stock Analysis
Score BFinancial · Grade C · Bearish
$50.94
$50.25
-1.4%
10/10
C
Financial
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
Trading near modeled fair value. No strong quantitative signal.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $50.25 (-1.4%). Approximately at fair value.
PEG-Based EPS
$64.22
FCF DCF Model
$42.18
Blended Fair Value
$50.25
Confidence
Medium
Methods
P/B Relative, P/E Relative, Dividend Discount
Quality Analysis
73/120 points
Investable
ROE (3Y Avg)
9.4%
ROIC-WACC Spread
-4.6%
D/E Ratio
1.2x
Current Ratio
0.4x
Interest Coverage
0x
FCF Positive Years
2/3
Quality Flags
- Financial sector: alternative quality assessment applied
- Low profitability margins
- Earnings declining
Market Sentiment
Wall Street Consensus
$61.00
+19.7% Upside
23 analysts
Range: $50.00 — $71.00
Rating: Strong Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($50.94) is 0.7% below SMA 200 ($51.29). Bearish trend. Caution on entry.
Tech Score 46/100 — Weak technicals. Bearish bias in trend or momentum.
Risk & Reward
Asymmetry Ratio
8.31:1
Expected Return
+45.2%
Bull Upside
+83.1%
Bear Downside
-10.0%
Excellent asymmetry: 8.31:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of BAC?
Based on our multi-method conviction analysis, the estimated fair value of Bank of America Corporation (BAC) is $50.25. This is calculated by blending P/B Relative, P/E Relative, Dividend Discount and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.
Is BAC a buy, sell, or hold?
BAC currently has a HOLD rating with a conviction score of 10/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is BAC a high-quality stock?
Bank of America Corporation has a quality grade of C (73/120 points), rated as Investable. Key metrics include ROE of 9.4%, ROIC-WACC spread of -4.6%, and D/E ratio of 1.2x.
What type of stock is BAC?
BAC is classified as a "financial" in our framework. Financial sector override: Financial Services
What do Wall Street analysts say about BAC?
23 Wall Street analysts have a consensus price target of $61.00 for BAC, representing +19.7% upside. Targets range from $50.00 to $71.00. The consensus recommendation is "Strong Buy". Our model is more cautious than Wall Street.
What are the risks of investing in BAC?
The risk/reward asymmetry ratio for BAC is 8.31:1, rated as Very Favorable. Excellent asymmetry: 8.31:1 ratio. Upside significantly outweighs downside. The expected return is +45.2%, with bull case upside of +83.1% and bear case downside of -10.0%.
What is the current trend for BAC?
BAC is in a bearish trend. Price ($50.94) is 0.7% below SMA 200 ($51.29). Bearish trend. Caution on entry. The technical score is 46/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.