Bank of America Corporation (BAC) Valuation
Rating: Slight Overpriced
12-Month Fair Value: $35 – $41 – $47
Confidence: MEDIUM
At $48, BAC trades above FV mid $41 but pulled back from $52.55. FRB capital modernization releases excess CET1. Iran war adds credit risk (oil >$100, spreads widening). FOMC hawkish supports NII but compresses multiples. Bank valuation: P/B anchored to ROE 12% vs CoE 11.6%. Best entry $38-42.
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