BAC
Bank of America
Bank / BV
★ Quality 28/100Price today
$61.55
what the market pays
Worth
$50.34
calculated TBV value
Price is 22% above its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Why Overvalued?
The model estimates an intrinsic value of $50.34 per share. Today's price of $61.55 is 18% above the calculated value — the market is paying a premium over what the model sees as fair.
The price is 22% above the calculated value. You're paying more than it's worth.
Buying here lowers your expected return and wipes out the safety margin.
The next reasonable entry zone starts at $47.82.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$40.27
-20% off Value
🟡 Discounted
≤$47.82
-5% off Value
🔴 Today
$61.55
-18% Valor
Overvalued
The market prices it too high versus what the business makes. Patience pays off here.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
— Warren Buffett
Model updated · July 2026
The business
Lives off other people's money: $1.9 trillion in nearly free deposits.
Bank of America is one of the four big universal banks in the U.S. It makes money by borrowing cheap (deposits) and charging more (loans, cards, mortgages), plus fees from wealth management (Merrill) and investment banking. NII represents about 55% of revenue.
Retail deposit scale — $1.9 trillion in deposits, many with no real cost. Switching your primary bank is a hassle few clients take on. The moat exists, but JPMorgan executes it better with a lower cost of capital.
Revenue history
From $89.1B to $108.6B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $113.1B · FY2025
Of every $100 in sales, $73 goes to costs and operations; $27 is left as net profit (27% margin).
Catalysts and risks
2026 guidance: NII growing +5-7% with asset repricing at current rates.
Buybacks of $18.3B in FY2025 cutting shares -4% YoY.
Normalization of unrealized losses in the HTM portfolio if the curve stays stable.
HTM portfolio with persistent unrealized losses — book equity pressured if rates rise.
ROE 10.6% barely beats cost of capital. Mediocre quality compared to JPM.
Sensitive to the consumer credit cycle: cards and auto loans are the first to fall in a recession.
Charlie's note
“At 1.275x book value you're paying a bit more than paper for a business growing at 7% — reasonable for a sticky deposit franchise, but remember JPMorgan does the same thing cheaper and better. Here patience means waiting to buy the second best at third-best pricing.”
Analysis · May 2026
So when would be a good price for Bank of America?
By our calculation, not yet. We will email you the day it drops to $47.82 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.