What Is BAC Fair Value?
Bank of America Corporation (BAC) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Bank of America Corporation (BAC) has a composite fair value estimate of $154.51 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $61.95, suggesting the stock is undervalued by 149.4%.
Data as of August 1, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$154.51
vs. current price of $61.95(+149.4%)
How Is BAC Fair Value Calculated?
Four independent models estimate what BAC is worth. Each uses different inputs and assumptions. The composite blends them by weight.
BAC Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$268.72
+333.8%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$46.66
-24.7%Overvalued
Inputs used
BAC Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$64.34
+3.9%Fair Value
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$83.09
+34.1%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $61.95 is 333.8% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $25.66B | $24.10B |
| Year 2 | $30.22B | $26.66B |
| Year 3 | $35.59B | $29.49B |
| Year 4 | $41.92B | $32.62B |
| Year 5 | $49.37B | $36.08B |
| Year 6 | $58.14B | $39.91B |
| Year 7 | $68.47B | $44.15B |
| Year 8 | $80.64B | $48.83B |
| Year 9 | $94.97B | $54.02B |
| Year 10 | $111.85B | $59.75B |
| Terminal Value | $2.89T | $1.54T |
What Are BAC's Key Financial Metrics?
Earnings & Growth
Current Price
$61.95
EPS (TTM)
$4.33
Forward P/E
11.7
Profit Margin
29.5%
Cash & Balance Sheet
Free Cash Flow
0
EBITDA
0
Book Value
$39.34
Total Debt
774.6B
What Do Analysts Say About BAC?
Low
$62.00
Average
$68.68
High
$75.00
Upside
+10.9%
BAC Fair Value FAQ
What is the fair value of BAC?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), BAC's estimated fair value is $154.51. The stock is currently trading at $61.95, which makes it undervalued by our analysis.
How is BAC's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is BAC overvalued or undervalued?
Based on our analysis, BAC is undervalued. The current price of $61.95 is 149.4% below our estimated fair value of $154.51.
What do Wall Street analysts say about BAC?
22 analysts cover Bank of America Corporation with a consensus rating of "Buy." The average price target is $68.68, ranging from $62.00 to $75.00. This implies 10.9% upside from the current price.