Thursday, March 30, 2023

Bank of America Valuation As of 30th March 2023

 


Bank of America is valued at circa 229 billion USD currently on public stock markets.

In my personal opinion, Bank of America's intrinsic worth is 300 billion USD, which is a long-term estimate

Main positive factors coming into my Bank of America valuation are a low Price/Earnings Ratio of 9, a low Price/Sales ratio, high net profit margin and moat, durable competitive advantage in banking for corporate, financial and retail customers.


A risk before my forecast is the fact that Bank of America's bond portfolio is of comparatively long duration, according to various sources, which could spark an asset/liability mismatch.

However, I trust Bank of America's risk professional should be able to weather such a crisis, if it occurs.

Bank of America has proved a stable franchise, up till now.


 


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