Is Bank of America Corporation (BAC) Undervalued?
Based on the current stock price of $56.17 and a P/E ratio of 15.35,Bank of America Corporation has a PEG ratio of 0.80.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 0.80, BAC appears to be potentially undervalued relative to its growth rate of 19.18%.
Based on a PEG ratio of 0.72 (adjusted for dividends).
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How we analyzed BAC
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 15.35and dividing it by the annual growth rate of 19.18%.
PEG = 15.35 (P/E) ÷ 19.18 (Growth) = 0.80
Frequently Asked Questions about BAC
What is the current PEG Ratio for Bank of America Corporation (BAC)?+
The current PEG Ratio for Bank of America Corporation is 0.80. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is BAC stock undervalued right now?+
Based on the PEG ratio of 0.80, Bank of America Corporation appears to be potentially undervalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for BAC?+
The PEGY ratio for Bank of America Corporation is 0.72. This metric accounts for dividend yield (1.99%), providing a more complete valuation picture.