Is BAC-PB undervalued?

AlphaMadera's AlphaVal page computes Bank of America Corporation's fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag BAC-PB as undervalued, fairly valued, or overvalued.

What is Bank of America Corporation's fair value?

Fair value for BAC-PB is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value BAC-PB?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from BAC-PB's most recent reported fundamentals.

BAC-PB - Bank of America Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $40.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Strong

Trading 50.4% below fair value

Current Price $24.98

Bear Case $35.22 41.0% upside ($35.22 - $24.98) / $24.98 = 41.0% ROTCE 9.8% → 0.85x TBV

Fair Value $50.32 101.4% upside ($50.32 - $24.98) / $24.98 = 101.4% ROTCE 13.0% → 1.33x TBV

Bull Case $65.41 161.9% upside ($65.41 - $24.98) / $24.98 = 161.9% ROTCE 15.0% → 1.62x TBV

Adjust Assumptions

Return on Tangible Equity

13.0%

Cost of Equity

10.8%

Key Value Driver

ROTCE (13.0%) vs. cost of equity (10.8%)

Implied Market Multiple 1.49x

Plain-Language Summary

Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $40.00 from 39 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $50.32 per share.

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.

⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

ℹ Wall Street's average price target is $40.00 (from 39 analysts). Our estimate is 37% above the consensus -- consider that gap carefully.

Key Risks

Book value quality matters as much as level — check loan loss reserves
Interest rate sensitivity creates non-linear earnings surprises
Insurance reserving is actuarial, not financial — errors emerge slowly