What is Bank of America Corporation (BAC) DCF Fair Value and Intrinsic Value in 2026?

Bank of America Corporation (BAC) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Bank of America Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Bank of America Corporation operates in the Financials sector (Banks - Diversified) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Bank of America Corporation's financial health rating and Piotroski F-Score?

Bank of America Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Bank of America Corporation (BAC) for quarterly SEC filing thesis breaks?

LocalAlpha audits Bank of America Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBAC

BAC

Bank of America CorporationFinancial Services / Banks - DiversifiedINTACT

Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, and underwriting and advisory services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

Share Price

$62.69

52W: $46.12 - $65.23

DCF Fair Value

$142.69

+56.1% MoS

Thesis Hub

P/E (TTM)

14.5x

ROIC

28.7%

Operating Margin

38.3%

FCF Yield

6.6%

Debt / Equity

0.65x

Piotroski Score

7/9

Altman Z-Score

4.51

Market Cap

$438.4B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$142.69

MOS Buy Target (-25%)

$107.02

Valuation Overlays: DCF Fair Value ($142.69) 25% MOS Buy Target ($107.02) Revised Graham ($147.65) Graham Number ($61.91)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$62.69

DCF Fair Value

$142.68

+56.1% MoS

Starting Free Cash Flow ($M)$28,765M

$100M$28,765M (Reported)$71,913M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$79,100M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$372.4B

PV of Terminal Value

$546.3B

Implied Enterprise Value

$918.7B

Implied Equity Value

$997.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$33,943	$40,052	$47,262	$55,769	$65,807	$68,769	$71,863	$75,097	$78,476	$82,008
Present Value (PV)	$31,140	$33,711	$36,495	$39,508	$42,770	$41,005	$39,312	$37,689	$36,133	$34,641

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-1.3% Premium

$61.91

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $4.33BVPS: $39.34

Revised Graham Formula+57.5% MoS

$147.65

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings6.2% Yield

$3.91 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $27.3BYield: 6.2%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

2.0% CAGR (Next 10 Yrs)

At the current price of $62.69, the market is assuming the business will compound Free Cash Flow at 2.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BAC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Bank of America Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 38.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Bank of America Corporation (BAC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Bank of America Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Bank of America Corporation has an estimated DCF intrinsic fair value of $142.69 per share compared to its current market price of $62.69. This represents an estimated 56.1% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $61.91.