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 16.9× TTM earnings — a 37% discount to its Financials sector average of 26.8× in our coverage.

The Numbers

P/E (TTM)

16.9×

Sector avg: 26.8×

P/S (TTM)

4.2×

Sector avg: 9.5×

Market Cap

$446.88B

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 $61.96 16.9×
BRK.B $504.14 —
V $379.47 —
MA $589.33 37.7×
MS $213.41 21.9×
GS $1026.48 20.9×

Is the Discount Justified?

August 30, 2026

Bank of America's P/E of 17.0x, below the financial sector average of 24.5x, may reflect market considerations of the broader interest rate environment. The company reported a 9% year-over-year increase in Q2 2026 net interest income and strong overall financial results, including positive operating income and diluted EPS. The stock is currently trading at approximately 14.5 times its trailing earnings and 1.58 times its book value. While renewed expectations for higher interest rates are seen as beneficial, the market might be factoring in potential economic uncertainties or a more conservative growth outlook compared to some peers, contributing to its current discount.

Sources

Frequently Asked Questions

Is BAC overvalued or undervalued?
On trailing-twelve-month earnings, BAC trades at 16.9x versus a Financials sector average of 26.8x in our coverage — a 36.9% 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.

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