Growth & Assumptions

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Market & Balance Sheet Data

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Cash Flow Projection

Year2027202820292030203120322033203420352036
Free Cash Flow38,118.1840,862.6843,804.846,958.7450,339.7753,541.3856,946.6160,568.4264,420.5768,517.72
Terminal Value---------882,165.63
Cumulated PVRunning Sum34,340.767,505.7799,535.46130,468.64160,342.85188,968.25216,397.07242,679.31267,862.91602,678.83
* Scroll horizontally for more yearsAll figures in USD Millions

Valuation Breakdown

Enterprise Value (EV)$602,678.83
(+) Cash & Investments$770,163.02
(-) Total Debt$767,072.01
Equity Value$605,769.84
Shares Outstanding7,212.46
Fair Value Per Share$83.99
All figures in USD Millions

Calculated Fair Value

$83.99
Current Price$49.81
Margin of Safety+68.62%
Buy

BAC (BAC) DCF Valuation Analysis

Independent intrinsic value calculation based on latest financial reports.

Potentially Undervalued

Our BAC DCF calculator utilizes a two-stage Discounted Cash Flow model to estimate the true value of BAC stock. As of the most recent quarterly report (12/31/2025), BAC generated $35,558,000,000 in Trailing Twelve Month (TTM) Free Cash Flow.

Key Valuation Metrics for BAC

Forward P/E
10.02
Price to Book
1.30
Margin of Safety
68.6%
Intrinsic Value
$83.99

By discounting BAC's future cash flows using an expected return of 11%, we can determine if the stock is currently trading at a margin of safety. A positive margin of safety suggests that market expectations may be too low relative to the company's historical cash flow productivity.

Final Verdict

For BAC to be considered a fair investment at current levels, it would need to sustain a cash flow growth rate of approximately 7.20% for the next five years. This valuation model accounts for BAC's current cash position of $770,163,015,680 and total debt of $767,072,010,240. With a fair value of $83.99, BAC shows potential upside for long-term investors.

Why use DCF for BAC?

Discounted Cash Flow is widely considered the most accurate method for valuing mature companies like BAC. Using our Free DCF Calculator, you can customize every assumption in this model to see how it affects the intrinsic value.

Based on Owner Earnings (FCF)
Includes Balance Sheet adjustments
Customizable growth assumptions

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