Bank of America Corporation (BAC) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. W...
Bank of America Corporation (BAC) currently trades at a P/E ratio of 10.64 (historical range: 6.73–16.11, median: 12.26), placing it at the 37th percentile — below its historical average, P/S ratio of 2.96 (range: 2.03–4.85, 26th percentile — below its historical average), EV/EBITDA of 11.78 (range: 3.99–27.10, 56th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Bank of America Corporation's P/E ratio has expanded by 34% over the observed period (from an average of 9.9 to 13.2).
Bank of America Corporation trades below its historical valuation range, with most metrics below their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 10.64 | 12.26 | 37th | below its historical average |
| P/S Ratio | 2.96 | 3.30 | 26th | below its historical average |
| EV/EBITDA | 11.78 | 11.38 | 56th | near its historical average |
Bank of America Corporation (BAC) Valuation & P/E History
Bank of America Corporation (BAC) is a US-listed stock operating in the Financial Services sector, specifically the Banks industry currently trading at $51.23 with a market capitalization of $358.2 billion. This page provides historical valuation analysis for BAC based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 10.64 is below the historical median of 12.26, placing BAC at the 37th percentile of its valuation range. The P/S ratio of 2.96 compares to a median of 3.30.
BAC Valuation Metrics & Historical Range
The valuation table above shows Bank of America Corporation's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether BAC is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests BAC is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Bank of America Corporation.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is BAC Overvalued or Undervalued?
Bank of America Corporation trades below its historical valuation range, with most metrics below their median levels. The overall valuation percentile of 40 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive BAC is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full BAC analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.BAC trades on NYSE. This page is for informational purposes only and is not financial advice.