What Is BAC Fair Value?
Bank of America Corporation (BAC) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Bank of America Corporation (BAC) has a composite fair value estimate of $149.60 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $50.01, suggesting the stock is undervalued by 199.2%.
Data as of October 31, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$149.60
vs. current price of $50.01(+199.2%)
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 →
$264.99
+429.9%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 →
$43.51
-13.0%Fair Value
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 →
$62.29
+24.5%Undervalued
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.
$73.57
+47.1%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 $50.01 is 429.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $25.44B | $23.95B |
| Year 2 | $29.70B | $26.32B |
| Year 3 | $34.68B | $28.92B |
| Year 4 | $40.49B | $31.78B |
| Year 5 | $47.27B | $34.92B |
| Year 6 | $55.19B | $38.38B |
| Year 7 | $64.43B | $42.17B |
| Year 8 | $75.22B | $46.34B |
| Year 9 | $87.82B | $50.93B |
| Year 10 | $102.53B | $55.96B |
| Terminal Value | $2.81T | $1.53T |
What Are BAC's Key Financial Metrics?
Earnings & Growth
Current Price
$50.01
EPS (TTM)
$4.19
Forward P/E
9.6
Profit Margin
28.1%
Cash & Balance Sheet
Free Cash Flow
0
EBITDA
0
Book Value
$39.26
Total Debt
745.6B
What Do Analysts Say About BAC?
Low
$56.00
Average
$62.95
High
$71.00
Upside
+25.9%
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 $149.60. The stock is currently trading at $50.01, 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 $50.01 is 199.2% below our estimated fair value of $149.60.
What do Wall Street analysts say about BAC?
22 analysts cover Bank of America Corporation with a consensus rating of "Strong Buy." The average price target is $62.95, ranging from $56.00 to $71.00. This implies 25.9% upside from the current price.