Bank of AmericaBAC

Is the price high or low right now, compared to what the market usually pays?

→At 14.3x earnings, the market is paying +50% more than BAC's own 11-year median of 9.5x. Expectations are elevated, so more has to go right to justify the price. Today's multiple is the highest in the charted history.

What has the market paid for BAC over the years?

→At 14.3x earnings, the market is paying +50% more than BAC's own 11-year median of 9.5x. Expectations are elevated, so more has to go right to justify the price. Today's multiple is the highest in the charted history.

Revenue: is the business selling more than it used to?

→Revenue reached $113.1B in 2025, compounding +6% a year since 2022 and the pace is picking up. The trailing twelve months are already running at $119.2B, ahead of the last full year.

Net income: how much of that revenue becomes profit?

→Net income was $30.5B in 2025, compounding +3% a year over three years. Trailing twelve-month profit stands at $33.6B.

How fast is it growing, year by year?

+7%revenue growth, FY 2025

→In 2025 revenue grew +7% while earnings moved +13% - when the earnings line runs above revenue, each new dollar of sales is arriving more profitably.

Revenue per share: is your slice growing as fast as the company?

$14.72revenue per share, FY 2025

→Revenue per share reached $14.72 in 2025, compounding +8% a year against +6% for BAC as a whole. Buybacks added roughly 2.2 points to your per-share result.

Margins: of every $1 of sales, how much survives each cost layer?

→Net margin stands at 27% in 2025. BAC doesn't break out gross or operating margin in its filings, so net is the only layer the data supports.

Earnings quality: do the reported profits turn into real cash?

→Operating cash flow runs at 282% of reported profit, so the earnings are more than backed by cash - depreciation and other non-cash charges are understating what the business actually collects.

What does it earn on the money it uses?

→ROE of 10% on shareholders' capital (ROCE isn't meaningful for this business model).

What does BAC earn on the money it lends out?

→BAC earns 1.76% on its assets after paying for deposits and other funding. That is below the 2.86% median of the largest US banks. The spread has widened from 1.72% in 2022. This spread is where a bank's profit begins, so it drives everything below.

How much does it cost to run the bank?

→It costs BAC 61.7% of every revenue dollar to run the bank, and lower is better here. Peers run at 65.4%, so BAC is the leaner operator. It has improved from 64.7% in 2022.

Is it a lender, or a fee business?

→Roughly a third of BAC's revenue (47%) comes from fees rather than interest, on $113.1B of total revenue in 2025. The mix has tilted back towards lending since 2011, and fee income matters because it does not depend on interest rates.

Does BAC earn more on its capital than that capital costs?

→BAC earns 10.1% on the capital it employs, comfortably above the 10% most investors treat as the cost of capital. It was 10.1% in 2022, so the trend is flat, and the pace is picking up.

Could it handle its debt if things went wrong?

→Debt of $399.8B sits against $229.7B of cash, or 1.3x shareholders' equity.

What is the bank setting aside for loans that go bad?

→BAC set aside $3.6B against expected credit losses in 2019, mid-range in its filed history. The sharpest move was 2008, when the charge went from $8.4B to $26.8B. Provisions rise before losses do, so this is the bank's own early read on borrower stress.

Is the lending funded by its own depositors?

→BAC holds $2.02T of deposits in 2025, +95% since 2011. Deposits are a bank's cheapest funding, and depositors leaving is the first sign of real trouble. It lends out 59% of that, so the book is funded comfortably from deposits rather than borrowed money.

Is the company's own capital growing or shrinking?

→The company's own capital grew from $290.2B in 2023 to $301.1B (+4%). The business is building book value rather than consuming it.

How much goes back to shareholders - and how much leaks out as stock compensation?

→$23.1B returned last year against $4.0B of stock issued to employees - the returns outweigh the dilution 5.8-to-1.

How fast is your ownership being diluted - or concentrated?

→The count shrank 3.2% last year - buybacks are outrunning stock compensation.

Is the dividend cheque itself growing?

→Down from $0.17 to $0.15 per share - the cheque has shrunk.

Can it actually afford the dividend?

→Comfortable: 16% of profits and 2% of free cash flow go out as dividends - well inside what the business generates.

BAC has issued or retired shares - did shareholders end up better off?

→BAC has shrunk its share count -25% from 2011 to 2025, so each remaining share owns more of the business. Revenue per share is +62% over the same years.

How is BAC's trend actually behaving right now?

→BAC is in a clear uptrend. The price is above the band where recent trading settled, and that band is still rising underneath it, so the floor keeps moving up. It has held that side of the band for 67 sessions, so this is well established. The last two weeks have rolled over even though the price is above where it stood a month ago, which is what losing steam looks like before it reaches the trend itself.

Are the people running it buying or selling with their own money?

→Insiders bought $198,501 against $198,381 of sales - net buying with their own money is the single most bullish signal insiders can send.