Market Pulse50Neutral

Bank of America CorporationOpportunity Rank #129(BAC) Intrinsic Value & DCF Analysis (2026)

Current Price

$47.52

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$47.52
Price
$86.53
Intrinsic Value
Undervalued by 82%MOS: $69.22

Fundamental Score

51/100
Neutral

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

The intrinsic value of Bank of America Corporation (BAC) is estimated at $86.53 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $47.52, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -11.88% long-term growth rate and a 12.00% discount rate (calculated: 15.79%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Bank of America Corporation (BAC) is estimated at $86.53 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $47.52, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -11.88% long-term growth rate and a 12.00% discount rate (calculated: 15.79%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$86.53
82.09% upside
20% margin of safety: $69.22
Years: 10Growth Rate: -11.88%
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Capital Efficiency

Average Quarterly ROIC
6.47%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

51/100
NeutralWeighted across 6 signals
DCF Discount
82.1% discount to price
100
FCF Yield
3.6% trailing FCF yield
41
ROIC vs WACC
ROIC 6.5% vs WACC 11.0% (0.6x)
29
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-13.0% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, Net Debt / FCF. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

80/100
Strong
Vs 6-Month Baseline:Above Avg (77th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 99%Updated: 1h ago
Sources: 171 (160 News · 11 Analyst)
Drivers(last 30 days)
105 news sentiment+1.7
46 regulatory scrutiny+1.1
4 upgrade headlines+0.4
2 downgrade headlines+0.3
3 legal risk+0.1
Analyst downgrades-0.0

Investment Coach

Updated 12h ago
BUYConfidence: 54%
Thesis
Bank of America Corporation is undervalued with an estimated fair value 83.3% above its current price, supported by a strong narrative score and a near net cash balance sheet. Despite trailing returns relative to its cost of capital, the company's improving narrative and buyback activity suggest potential for value realization.
Key Risk
The primary risk is the sustained negative spread between ROIC and WACC, which may limit long-term value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -11.88%5 Year CAGR (Adjusted): 623.38%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$12,613$12,613-$8,805$44,982-$6,327-$7,193$37,993$61,777$39,520$9,864$17,277$28,397$31,955$93,338-$16,056$65,797$83,581$131,971$6,132$13,179$15,257

How Intrinziq Estimates Fair Value

Intrinziq estimates Bank of America Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Bank of America CorporationFinancial Services

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The company's Global Wealth & Investment Management segment offers investment management, brokerage, banking, and trust and retirement products and services; and wealth management solutions, as well as customized solutions, including specialty asset management services. Its Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options and merchant services; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The company's Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. As of December 31, 2021, it served approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers; approximately 16,000 ATMs; and digital banking platforms with approximately 41 million active users. The company was founded in 1784 and is based in Charlotte, North Carolina.