Bank of America Corporation BAC
Bank of America's earnings trajectory remains solid—FY2025 EPS of $3.82 grew 18.6% YoY, operating margin expanded to 19.7%, and total debt was cut from $658B to $366B—but the stock at $64.23 now trades well above both its 50-day ($60.04) and 200-day ($54.28) moving averages with an RSI of 64.6, suggesting much of the improvement is priced in. Valuation is fair rather than cheap: P/E of 14.56x is in line with the peer median of 14.60x, but P/S of 2.57x carries a 25.4% premium.
Smart money has improved meaningfully (smscore 0.42 as of Q2 2026 vs -0.26 in Q1 2026), yet insiders remain consistent net sellers (-$141M over 24 months) and Berkshire Hathaway has been trimming for eight straight quarters, capping upside conviction.
What could go wrong
- Technical exhaustion. RSI at 64.6 and price $4.19 above the 50-day MA ($60.04) leave limited room for upside before overbought conditions trigger a pullback.
- Insider and Berkshire selling. Net insider selling of -$141M over 24 months and Berkshire's eight-quarter trimming streak signal that large holders see better uses of capital.
- Jio Credit capital deployment. The $1.9B investment for up to 49.9% of Jio Credit ties capital to an unproven India NBFC venture, with uncertain returns timeline.
- Revenue stagnation. FY2025 revenue of $191.6B declined 0.45% YoY, meaning EPS growth is driven by cost control and debt reduction rather than top-line expansion.
What would change my mind
Where this comes from: FMP FY2025 fundamentals + derived_metrics · FMP FY2024 and FY2025 fundamentals · peer_relative composite · peer_relative composite. Orin's read on BAC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All BAC filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 10-Q | 31 Jul | Bank of America Corporation reported net income of $9.07 billion ($1.21 per diluted share) for the three months ended June 30, 2026, an increase from $7.17 billion ($0.90 per… | read |
| 8-K | 24 Jul | Bank of America Corporation's Board of Directors declared a quarterly cash dividend of $0.32 per common share on July 24, 2026. | read |
| 8-K | 14 Jul | Bank of America Corporation reported second quarter net income of $9.1 billion, or $1.21 per diluted share, for the period ended June 30, 2026. | read |
| 13G | 15 May | — | on file |
| 13G/A | 15 May | — | on file |
| 13G | 14 May | — | on file |
| 13G | 14 May | — | on file |
| 13G | 14 May | — | on file |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Berkshire Hathaway | $27.5B | 9.2% of fund |
| Vanguard Capital Management | $24.0B | 0.5% of fund |
| State Street | $17.1B | 0.5% of fund |
| Fmr | $10.8B | 0.5% of fund |
| Vanguard Portfolio Management | $9.8B | 0.4% of fund |
| Geode Capital Management | $8.9B | 0.5% of fund |
178 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 498 Form 4 filings, net −$142.1M. Of the 50 on hand, 0 were open-market purchases and 6 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about BAC
Orin answers questions about BAC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 12.7× | 11.8× | 21.6× |
| EV/EBITDA | 24.1× | 16.1× | — |
| P/S | 2.04× | 2.11× | — |
| P/B | 1.3× | 1.2× | — |
Its P/E sits 80th percentile of its own last 5 years (+0.88σ from its own mean).
13.9%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $12.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$66
$59 – $75 · +18% against today's price
- 35 buy or overweight
- 18 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| BACBank of America Corporation | $397B | 12.7× | 24.1× | 59.3% | 17.2% | 11% |
| CCitigroup Inc. | $226B | 14.0× | 23.1× | 46.6% | 10.2% | 8% |
| GSThe Goldman Sachs Group, Inc. | $276B | 14.3× | 26.5× | 57.3% | 17.8% | 17% |
| WFCWells Fargo & Company | $248B | 11.7× | 15.2× | 64.5% | 17.5% | 13% |
The median is of the 3 peers listed above and nothing else — check it against the column. This company trades 9.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $33 | $55.11 · −40% | 2026-06-10 |
| Levered DCF | $-3 | $55.11 · −106% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.