Bank of America (BAC) stock analysis: valuation and financials

Business quality scorecard

• Growth44
• Cash flow47
• Capital allocation100
• Valuation97

0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.

How it makes money

Bank of America earns net interest income ($60.1B, 53.1% of FY2025 revenue) on loans, securities and deposits plus fee income from consumers, corporations, institutions and governments, with the U.S. (86.4% of revenue) as the profit engine behind $30.5B net income and a 27.0% net margin.

Financials by year

Amounts in USD · What is free cash flow?

Margins Gross margin is not reported for a bank; net margin proxy rose to 27.0% in FY2025 from 25.5% in FY2024, 28.2% TTM and 28.8% in Q2 FY2026, on higher net interest and noninterest income.

• Cash flow WatchFY2025 operating cash flow was $12.6B versus net income of $30.5B, a 0.58x conversion flag; TTM operating cash flow of $94.7B equals 2.8x TTM net income.
• Debt LowTotal debt $339.9B TTM; net debt $110.1B, equal to 0.37x equity of $301.1B and 3.2% of the $3.5T balance sheet; debt/equity 1.13x.

Balance sheet

Cash & short-term investments

$229.7B

Total debt

$339.9B

Net debt

$110.1B

Net debt / EBITDA

—

As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet

Management and track record

• Management AdequateShareholder-return discipline: $69.3B of buybacks over five years versus $16.0B of stock compensation (4.3x), and diluted shares fell at a 2.0% CAGR to 7.681B.
• Credibility MediumNone of the four releases offers quantitative guidance; outlook language is qualitative only ("pipelines remain strong," "bullish on the U.S. economy in 2026"), so guidance-versus-actual scoring is not possible from the record.