Upside case
Bull case
$164+208.8%
BAC would need investors to value it at roughly 37x earnings — about 25x more generous than today's 12x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Bank of America Corporation (BAC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
54
analysts
35 bullish · 1 bearish · 54 covering BAC
Strong Buy
0
Buy
35
Hold
18
Sell
1
Strong Sell
0
Consensus Target
$61
+15.1% vs today
Scenario Range
$46 – $164
Model bear to bull value window
Coverage
54
Published analyst ratings
Valuation Context
11.9x
Forward P/E · Market cap $404.3B
BAC price targets
Three scenarios for where BAC stock could go
Current
~$53
Confidence
62 / 100
Updated
May 1, 2026
Where we are now
Current · $53
Bear
$46
Base
$66
Bull
$164
Market caseClosest to today
Base case
$66+24.3%
At 15x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$46-13.3%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push BAC down roughly 13% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Bank of America Corporation
BAC · NYSEFinancial ServicesBanks - DiversifiedDecember year-end
Bank of America is one of the world's largest financial institutions providing comprehensive banking and financial services to consumers, businesses, and institutions. It generates revenue primarily through net interest income from its massive loan portfolio — about 60% of total revenue — supplemented by fees from investment banking, wealth management, and trading activities. The company's key advantage is its massive scale and nationwide branch network — the second-largest in the U.S. — which creates a stable deposit base and cross-selling opportunities across its diverse financial services ecosystem.
Market Cap
$404.3B
Net Income TTM
$30.6B
BAC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
82%Exceptional
vs consensus estimates
Avg EPS Surprise
+6.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q4 2025
Q1 2026
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q4 2025
EPS
$1.06/$0.95
Revenue
$28.1B/$27.5B
Q1 2026
EPS
$0.98/$0.96
Revenue
$28.4B/$27.8B
Q1 2026
EPS
$1.00/—
Revenue
$49.7B/—
Q2 2026
EPS
$1.11/$1.01
Revenue
$30.3B/$29.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q4 2025 | $1.06/$0.95 | +11.3% | $28.1B/$27.5B | +2.1% |
| Q1 2026 | $0.98/$0.96 | +2.3% | $28.4B/$27.8B | +2.2% |
| Q1 2026 | $1.00/— | — | $49.7B/— | — |
| Q2 2026 | $1.11/$1.01 | +9.9% | $30.3B/$29.9B | +1.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$155.1B
-17.8% YoY
FY2
$161.2B
+3.9% YoY
EPS Outlook
FY1
$4.54
+11.8% YoY
FY2
$4.75
+4.6% YoY
Trailing FCF (TTM)$12.6B
Next Earnings
—
Expected EPS
—
Expected Revenue
—
BAC beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
BAC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $192.4B
Product Mix
Latest annual revenue by segment or product family
Loans and Leases
32.2%
+8.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
86.8%
+3.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Loans and Leases is the largest disclosed segment at 32.2% of FY 2024 revenue, up 8.5% YoY.
UNITED STATES is the largest reported region at 86.8%, up 3.4% YoY.
BAC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Undervalued
Fair value est. $58 — implies +8.5% from today's price.
Upside to Fair Value
8.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
BAC
13.9x
vs
S&P 500
25.1x
45% discount
vs Financial Services Trailing P/E
BAC
13.9x
vs
Financial Services
13.3x
In line with benchmark
vs BAC 5Y Avg P/E
Today
13.9x
vs
5Y Average
12.4x
+12% premium
Forward PE
11.9x
S&P 500
19.1x
-37%
Financial Services
10.4x
+15%
5Y Avg
—
—
Trailing PE
13.9x
S&P 500
25.1x
-45%
Financial Services
13.3x
+4%
5Y Avg
12.4x
+12%
PEG Ratio
0.91x
S&P 500
1.72x
-47%
Financial Services
1.01x
-10%
5Y Avg
—
—
EV/EBITDA
14.7x
S&P 500
15.2x
-3%
Financial Services
11.4x
+29%
5Y Avg
17.2x
-15%
Price/FCF
32.1x
S&P 500
21.1x
+52%
Financial Services
10.6x
+204%
5Y Avg
19.5x
+65%
Price/Sales
2.1x
S&P 500
3.1x
-31%
Financial Services
2.2x
-4%
5Y Avg
2.4x
-11%
Dividend Yield
2.39%
S&P 500
1.87%
+28%
Financial Services
2.70%
-12%
5Y Avg
2.74%
-13%
| Metric | BAC | S&P 500 | Financial Services | 5Y Avg BAC |
|---|---|---|---|---|
| Forward PE | 11.9x | 19.1x-37% | 10.4x+15% | — |
| Trailing PE | 13.9x | 25.1x-45% | 13.3x | 12.4x+12% |
| PEG Ratio | 0.91x | 1.72x-47% | 1.01x-10% | — |
| EV/EBITDA | 14.7x | 15.2x | 11.4x+29% | 17.2x-15% |
| Price/FCF | 32.1x | 21.1x+52% | 10.6x+204% | 19.5x+65% |
| Price/Sales | 2.1x | 3.1x-31% | 2.2x | 2.4x-11% |
| Dividend Yield | 2.39% | 1.87% | 2.70% | 2.74% |
BAC trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolBAC Financial Health
Verdict
Stressed
BAC generates 10.1% ROE and 0.9% return on assets — the two primary signals for banking profitability. FCF-based metrics are not applicable to financial companies.
Earnings Engine
Revenue, profitability, and return on capital
Revenue (TTM)
Trailing-twelve-month sales base
—
Revenue Growth
TTM vs prior year
—
Operating Margin
Operating income divided by revenue
—
Net Margin
Net income divided by revenue
—
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4.06
ROE
Return on equity — the primary profitability signal for banks
10.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
3.2%
ROA
Return on assets, trailing twelve months
0.9%
Cash & Equivalents
Liquid assets on the balance sheet
$231.8B
Net Debt
Total debt minus cash
$134.1B
FCF Analysis
Traditional FCF and debt/FCF ratios are not meaningful for financial companies. Focus on ROE and ROA above.
ROE
Return on equity — the headline bank profitability metric
10.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
7.7%
Dividend
2.4%
Buyback
5.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$21.4B
Dividend / Share
Annualized trailing dividend per share
$1.27
Payout Ratio
Share of earnings distributed as dividends
31.2%
Shares Outstanding
Declining as buybacks retire shares
7.5B
All figures from the trailing twelve months. For financial companies, ROE and ROA are the primary health signals — FCF-based metrics are not applicable.
Open full ratios pageBAC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Interest Rate Sensitivity
Bank of America’s profitability is tightly linked to interest rate movements. Rate hikes can boost asset returns but also raise deposit costs, squeezing net interest income; a decline in rates could reduce interest income and lower the stock’s valuation.
High Risk
Credit Quality Deterioration
Deterioration in credit quality, especially in the commercial real estate portfolio, poses a significant risk. Rising delinquencies and charge‑offs amid a weakening economy could materially impact earnings.
High Risk
Regulatory & Capital Constraints
Stricter regulatory standards, higher capital requirements, and intensified stress tests can limit flexibility and pressure equity returns. Compliance costs and potential new legislation add further uncertainty.
Medium
Liquidity & Funding Risk
The bank faces liquidity risk if it cannot meet liabilities or deposit withdrawals without access to funding at reasonable market rates. This could impair operations during periods of market stress.
Medium
Operational & Cybersecurity Risk
Operational risks, including cybersecurity breaches, fraud, and compliance failures, can lead to financial costs and reputational damage, potentially affecting customer trust and regulatory scrutiny.
Lower
International Exposure
Bank of America’s global operations expose it to country‑specific economic and political conditions, currency fluctuations, and social instability, which could impact earnings in foreign markets.
Lower
Commercial Real Estate Concentration
Heavy exposure to office property lending in the commercial real estate sector increases vulnerability to market downturns in that segment.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why BAC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Net Interest Income Growth
Bank of America’s NII guidance for 2026 is 5‑7%, still above historical averages. Analysts project a 7% year‑over‑year rise in NII for the first quarter of 2026, driven by a flatter yield curve and limited rate cuts.
Diversified Revenue Streams
Revenue comes from Global Banking, Merrill wealth management, and Global Markets. Investment banking fees are expected to rise, and market revenue is projected to grow, creating a more balanced earnings profile beyond spread income.
Strong Capital and Liquidity Position
BAC maintains a high CET1 ratio and prudent liquidity, ensuring resilience against economic and regulatory shocks. Its disciplined credit risk management underpins this robust capital stance.
Earnings Growth via Digital & AI
Digital investments, AI, and loan growth are expected to lift earnings and profit margins. Projections estimate revenues of $130.6 B and earnings of $36.5 B by 2029, requiring roughly 6.7% yearly revenue growth.
Sustainable Capital Returns
The bank’s history of dividend increases and share repurchases supports long‑term dividend growth of 6‑8% annually. This, combined with buybacks, could deliver a total return of 9‑10% for shareholders.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
BAC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$53.12
52W Range Position
74%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$40.56
+31.0% from the low
52-Week High
$57.55
-7.7% from the high
1 Month
+6.11%
3 Month
-3.31%
YTD
-5.1%
1 Year
+29.2%
3Y CAGR
+24.2%
5Y CAGR
+5.1%
10Y CAGR
+14.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
BAC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
11.9x
vs 13.9x median
-14% below peer median
Revenue Growth
-17.8%
vs -13.2% median
-35% below peer median
Net Margin
—
vs — median
Peer median unavailable
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
BAC BAC Bank of America Corporation | $404.3B | 11.9x | -17.8% | — | Buy | +15.1% |
JPM JPM JPMorgan Chase & Co. | $834.2B | 13.9x | -6.4% | — | Buy | +9.5% |
WFC WFC Wells Fargo & Company | $247.1B | 11.4x | -13.2% | — | Hold | +22.8% |
C C Citigroup Inc. | $223.7B | 11.8x | -15.9% | — | Buy | +9.7% |
GS GS The Goldman Sachs Group, Inc. | $285.5B | 15.5x | -23.1% | — | Hold | +8.4% |
MS MS Morgan Stanley | $301.1B | 15.9x | -5.3% | — | Buy | +8.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
BAC Dividend and Capital Return
BAC returns capital mainly through $21.4B/year in buybacks (5.3% buyback yield), with a modest 2.39% dividend — combining for 7.7% total shareholder yield. The dividend has grown for 12 consecutive years.
Dividend SustainableFCF Stretched
Total Shareholder Yield
7.7%
Dividend + buyback return per year
Buyback Yield
5.3%
Dividend Yield
2.39%
Payout Ratio
31.2%
How BAC Splits Its Return
Div 2.39%
Buyback 5.3%
Dividend 2.39%Buybacks 5.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.27
Growth Streak
Consecutive years of dividend increases
12Y
3Y Div CAGR
7.9%
5Y Div CAGR
8.4%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$21.4B
Estimated Shares Retired
403M
Approx. Share Reduction
5.3%
Shares Outstanding
Current diluted share count from the screening snapshot
7.5B
At 5.3%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.56 | — | — | — |
| 2025 | $1.08 | +8.0% | 5.2% | 7.5% |
| 2024 | $1.00 | +8.7% | 3.8% | 6.6% |
| 2023 | $0.92 | +7.0% | 1.7% | 5.0% |
| 2022 | $0.86 | +10.3% | 1.9% | 5.0% |
FAQ
7 questionsBAC Investor Questions
Common questions answered from live analyst data and company financials.
01Is Bank of America Corporation (BAC) stock a buy or sell in 2026?
Bank of America Corporation (BAC) is rated Buy by Wall Street analysts as of 2026. Of 54 analysts covering the stock, 35 rate it Buy or Strong Buy, 18 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $61, implying +15.1% from the current price of $53. The bear case scenario is $46 and the bull case is $164.
02What is the BAC stock price target for 2026?
The Wall Street consensus price target for BAC is $61 based on 54 analyst estimates. The high-end target is $71 (+33.7% from today), and the low-end target is $50 (-5.9%). The base case model target is $66.
03Is Bank of America Corporation (BAC) stock overvalued in 2026?
BAC trades at 11.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals slightly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Bank of America Corporation (BAC) stock in 2026?
The primary risks for BAC in 2026 are: (1) Interest Rate Sensitivity — Bank of America’s profitability is tightly linked to interest rate movements. (2) Credit Quality Deterioration — Deterioration in credit quality, especially in the commercial real estate portfolio, poses a significant risk. (3) Regulatory & Capital Constraints — Stricter regulatory standards, higher capital requirements, and intensified stress tests can limit flexibility and pressure equity returns. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Bank of America Corporation's revenue and earnings forecast?
Analyst consensus estimates BAC will report consensus revenue of $155.1B (-17.8% year-over-year) and EPS of $4.54 (+11.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $161.2B in revenue.
06When does Bank of America Corporation (BAC) report its next earnings?
A confirmed upcoming earnings date for BAC is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Bank of America Corporation generate?
Bank of America Corporation (BAC) generated $12.6B in free cash flow over the trailing twelve months. BAC returns capital to shareholders through dividends (2.4% yield) and share repurchases ($21.4B TTM).