BAC · NYQ · Financial Services
Bank of America Corporation
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 38.42
Market price
USD 49.57
Implied upside
-22.5%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 10.1%
- Payout
- 37%
- Cost of equity
- 9.67%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 277.3bn | USD 293.8bn | USD 310.2bn | USD 326.4bn | USD 342.1bn | USD 357.2bn | USD 371.7bn | USD 385.3bn | USD 397.9bn | USD 409.4bn |
| Return on equity | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% | 10.1% |
| Excess return | USD 1.1bn | USD 1.2bn | USD 1.3bn | USD 1.3bn | USD 1.4bn | USD 1.4bn | USD 1.5bn | USD 1.6bn | USD 1.6bn | USD 1.7bn |
| Present value | USD 1.0bn | USD 986.3m | USD 949.6m | USD 911.0m | USD 870.7m | USD 829.1m | USD 786.5m | USD 743.4m | USD 700.1m | USD 656.8m |
| Book equity | USD 277.3bn |
| Present value of excess returns | USD 8.5bn |
| Terminal, growing at 2.50% | USD 9.4bn |
| Equity value | USD 295.1bn |
| Per share | USD 38.42 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.129 | Reported 1.192, pulled toward 1.0 (Blume) |
| Cost of equity | 9.67% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.