Bank of America Corporation (BAC) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Diversified
EV/EBITDA
↑
14.70
↓-15% vs avg
5yr avg: 17.24
30Y Low6.1·High97.5
P/FCF
↑
32.05
↑+65% vs avg
5yr avg: 19.48
30Y Low0.9·High64.8
P/B Ratio
↓
1.32
+13% vs avg
5yr avg: 1.17
30Y Low0.2·High3.5
ROE
↓
10.2%
↓+1% vs avg
5yr avg: 10.2%
30Y Low-1%·High44%
Debt/EBITDA
↓
9.99
↓-38% vs avg
5yr avg: 16.05
30Y Low4.3·High45.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
BAC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Bank of America Corporation trades at 13.9x earnings, 12% above its 5-year average of 12.4x, sitting at the 44th percentile of its historical range. This is roughly in line with the Financial Services sector median P/E of 13.3x. On a free-cash-flow basis, the stock trades at 32.1x P/FCF, 65% above the 5-year average of 19.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $404.3B | $415.1B | $344.7B | $272.1B | $270.5B | $380.8B | $266.6B | $332.6B | $252.2B | $318.2B | $244.1B |
| Enterprise Value | $538.3B | $549.1B | $706.7B | $548.8B | $531.6B | $521.6B | $332.2B | $594.1B | $503.9B | $586.5B | $497.6B |
| P/E Ratio → | 13.91 | 14.40 | 13.65 | 10.93 | 10.38 | 12.46 | 16.21 | 12.81 | 9.44 | 18.92 | 14.73 |
| P/S Ratio | 2.14 | 2.20 | 1.79 | 1.58 | 2.35 | 4.06 | 2.84 | 2.93 | 2.30 | 3.20 | 2.61 |
| P/B Ratio | 1.32 | 1.37 | 1.17 | 0.93 | 0.99 | 1.41 | 0.98 | 1.26 | 0.95 | 1.19 | 0.92 |
| P/FCF | 32.05 | 32.91 | — | 6.05 | — | — | 7.02 | 5.38 | 6.38 | 32.26 | 14.13 |
| P/OCF | 32.05 | 32.91 | — | 6.05 | — | — | 7.02 | 5.38 | 6.38 | 32.26 | 14.13 |
P/E links to full P/E history page with 30-year chart
BAC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Bank of America Corporation's enterprise value stands at 14.7x EBITDA, 15% below its 5-year average of 17.2x. The Financial Services sector median is 11.4x, placing the stock at a 29% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.91 | 3.67 | 3.19 | 4.62 | 5.56 | 3.54 | 5.23 | 4.60 | 5.90 | 5.31 |
| EV / EBITDA | 14.70 | 15.00 | 22.47 | 18.05 | 16.13 | 14.54 | 15.94 | 17.23 | 13.75 | 18.73 | 18.25 |
| EV / EBIT | 15.43 | 15.74 | 24.16 | 19.36 | 17.17 | 15.35 | 17.49 | 18.14 | 14.57 | 20.08 | 19.89 |
| EV / FCF | — | 43.54 | — | 12.20 | — | — | 8.74 | 9.62 | 12.75 | 59.46 | 28.80 |
BAC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Bank of America Corporation earns an operating margin of 18.5%, below the Financial Services sector average of 21.4%. Operating margins have expanded from 16.5% to 18.5% over the past 3 years, signaling improving operational efficiency. ROE of 10.2% is modest. ROIC of 3.2% represents below-average returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.4% | 55.4% | 49.9% | 54.8% | 80.3% | 99.8% | 79.2% | 77.2% | 80.0% | 84.2% | 85.5% |
| Operating Margin | 18.5% | 18.5% | 15.2% | 16.5% | 26.9% | 36.2% | 20.3% | 28.8% | 31.5% | 29.4% | 26.7% |
| Net Profit Margin | 16.2% | 16.2% | 14.1% | 15.4% | 23.9% | 34.1% | 19.1% | 24.1% | 25.7% | 18.3% | 19.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.2% | 10.2% | 9.2% | 9.4% | 10.1% | 11.8% | 6.7% | 10.3% | 10.6% | 6.8% | 6.8% |
| ROA | 0.9% | 0.9% | 0.8% | 0.9% | 0.9% | 1.1% | 0.7% | 1.1% | 1.2% | 0.8% | 0.8% |
| ROIC | 3.2% | 3.2% | 2.4% | 2.5% | 3.0% | 3.4% | 2.0% | 3.5% | 3.7% | 3.2% | 2.7% |
| ROCE | 4.2% | 4.2% | 3.5% | 3.9% | 5.2% | 5.8% | 3.4% | 6.1% | 6.5% | 5.6% | 4.7% |
BAC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Bank of America Corporation carries a Debt/EBITDA ratio of 10.0x, which is highly leveraged (142% above the sector average of 4.1x). Net debt stands at $134.1B ($365.9B total debt minus $231.8B cash). Interest coverage of just 0.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.21 | 1.21 | 2.23 | 2.12 | 1.82 | 1.84 | 1.66 | 1.62 | 1.65 | 1.64 | 1.54 |
| Debt / EBITDA | 9.99 | 9.99 | 20.94 | 20.34 | 15.13 | 13.83 | 21.72 | 12.47 | 11.91 | 13.95 | 15.08 |
| Net Debt / Equity | — | 0.44 | 1.22 | 0.95 | 0.96 | 0.52 | 0.24 | 0.99 | 0.95 | 1.00 | 0.95 |
| Net Debt / EBITDA | 3.66 | 3.66 | 11.51 | 9.10 | 7.92 | 3.93 | 3.15 | 7.58 | 6.87 | 8.57 | 9.30 |
| Debt / FCF | — | 10.63 | — | 6.15 | — | — | 1.73 | 4.23 | 6.37 | 27.20 | 14.67 |
| Interest Coverage | 0.44 | 0.44 | 0.32 | 0.39 | 1.54 | 7.17 | 2.31 | 1.47 | 1.86 | 2.37 | 2.51 |
BAC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.42x is below 1.0, meaning current liabilities exceed current assets — though the company's $231.8B cash position helps mitigate short-term liquidity concerns. The current ratio has improved from 0.30x to 0.42x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.42 | 0.42 | 0.30 | 0.30 | 0.22 | 0.29 | 0.31 | 0.26 | 0.28 | 0.32 | 0.32 |
| Quick Ratio | 0.42 | 0.42 | 0.30 | 0.30 | 0.22 | 0.29 | 0.31 | 0.26 | 0.28 | 0.32 | 0.32 |
| Cash Ratio | 0.09 | 0.09 | 0.12 | 0.15 | 0.10 | 0.14 | 0.17 | 0.09 | 0.10 | 0.10 | 0.09 |
| Asset Turnover | — | 0.06 | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 0.05 | 0.05 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
BAC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Bank of America Corporation returns 7.7% to shareholders annually — split between a 2.4% dividend yield and 5.3% buyback yield. The payout ratio of 31.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 7.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.3% | 2.8% | 3.3% | 3.2% | 2.1% | 2.9% | 1.8% | 2.7% | 1.8% | 1.7% |
| Payout Ratio | 31.2% | 31.2% | 35.0% | 34.3% | 31.2% | 25.2% | 43.2% | 21.6% | 24.5% | 31.3% | 23.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.2% | 6.9% | 7.3% | 9.1% | 9.6% | 8.0% | 6.2% | 7.8% | 10.6% | 5.3% | 6.8% |
| FCF Yield | 3.1% | 3.0% | — | 16.5% | — | — | 14.2% | 18.6% | 15.7% | 3.1% | 7.1% |
| Buyback Yield | 5.3% | 5.2% | 3.8% | 1.7% | 1.9% | 6.6% | 2.6% | 8.5% | 9.8% | 4.0% | 2.1% |
| Total Shareholder Yield | 7.7% | 7.5% | 6.6% | 5.0% | 5.0% | 8.7% | 5.5% | 10.2% | 12.5% | 5.8% | 3.8% |
| Shares Outstanding | — | $7.5B | $7.8B | $8.1B | $8.2B | $8.6B | $8.8B | $9.4B | $10.2B | $10.8B | $11.0B |
Peer Comparison
Compare BAC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 BACYou | $404B | 13.9 | 14.7 | 32.1 | 55.4% | 18.5% | 10.2% | 3.2% | 10.0 |
 JPM | $834B | 15.7 | 13.4 | — | 58.6% | 27.7% | 17.4% | 5.4% | 9.0 |
 WFC | $247B | 14.9 | 10.5 | 81.4 | 62.2% | 18.6% | 10.7% | 3.7% | 9.1 |
 C | $224B | 21.5 | 25.2 | — | 41.7% | 10.0% | 6.1% | 1.6% | 27.7 |
 GS | $285B | 22.7 | 34.6 | — | 41.1% | 14.5% | 12.0% | 1.9% | 29.7 |
 MS | $301B | 23.8 | 25.7 | — | 55.6% | 17.1% | 13.0% | 2.9% | 15.8 |
 USB | $86B | 12.1 | 11.4 | — | 62.8% | 22.2% | 12.2% | 5.2% | 7.6 |
 PNC | $90B | 16.1 | 14.0 | 11.4 | 59.4% | 21.5% | 11.2% | 4.5% | 8.2 |
 TFC | $66B | 14.9 | 233.4 | 30.4 | 47.0% | -2.5% | 7.8% | -0.4% | 164.7 |
 COF | $117B | 47.1 | 14.7 | 4.5 | 47.3% | 3.3% | 2.8% | 1.3% | 6.8 |
 CFG | $28B | 21.2 | 12.1 | 14.8 | 57.6% | 15.3% | 6.2% | 3.8% | 5.2 |
| Financial Services Median | — | 13.3 | 11.4 | 10.6 | 62.9% | 21.4% | 9.5% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonBAC — Frequently Asked Questions
Quick answers to the most common questions about buying BAC stock.
What is Bank of America Corporation's P/E ratio?
Bank of America Corporation's current P/E ratio is 13.9x. The historical average is 17.8x. This places it at the 44th percentile of its historical range.
What is Bank of America Corporation's EV/EBITDA?
Bank of America Corporation's current EV/EBITDA is 14.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 27.4x.
What is Bank of America Corporation's ROE?
Bank of America Corporation's return on equity (ROE) is 10.2%. The historical average is 11.3%.
Is BAC stock overvalued?
Based on historical data, Bank of America Corporation is trading at a P/E of 13.9x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Bank of America Corporation's dividend yield?
Bank of America Corporation's current dividend yield is 2.39% with a payout ratio of 31.2%.
What are Bank of America Corporation's profit margins?
Bank of America Corporation has 55.4% gross margin and 18.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Bank of America Corporation have?
Bank of America Corporation's Debt/EBITDA ratio is 10.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.