Bank of America Corporation (BAC) is one of the world's leading financial institutions, providing a comprehensive range of financial services across eight lines of business serving three main customer groups: individuals, companies, and institutional investors [4]. Founded in 1904, BAC has evolved into a global financial powerhouse with a robust network of resources, delivering banking, investing, asset management, and other financial and risk management products and services through its extensive physical and digital presence [2].

• In Q4 2024, BAC reported earnings per share (EPS) of $0.82, exceeding analysts' consensus estimate of $0.77 by $0.05 [1]
• Revenue for the quarter reached $25.3 billion, with net income of $6.7 billion [4]
• The company maintained a return on equity of 10.09% and a net margin of 12.48% during the quarter [1]
• BAC's next quarterly earnings release is scheduled for April 15, 2025 [4]

• BAC's revenue has shown moderate growth, with a 5-year average annual growth rate of approximately 3.06%, slightly lower than the banking industry average of 3.87% [2]
• For the full year 2024, BAC reported total revenue of $101.9 billion, representing a 3.4% year-over-year increase [3]
• The company experienced a 6.41% revenue growth in Q4 2024 compared to the same quarter in the previous year [3]
• Historical earnings data shows BAC's earnings have grown by 2.9% per year over the past 5 years, with a slight acceleration to 2.6% growth over the past year [1]
• The company's growth has been supported by its digital transformation initiatives, with 58 million verified digital users as reported in their investor relations materials [4]

• BAC maintains a solid balance sheet with total assets of $3,261.5 billion and total equity of $295.6 billion as of December 2024 [1] [2]
• The bank has an appropriate loan-to-deposit ratio of 55%, with total deposits of $1,965.5 billion and total loans of $1,082.6 billion [1] [2]
• BAC's asset-to-equity ratio stands at 11x, which is considered moderate for the banking industry [1] [2]
• The company maintains sufficient allowance for bad loans (197% coverage), with bad loans currently at 0.6% of total loans, indicating prudent risk management [1] [2]
• BAC's debt-to-equity ratio was 10.04 as of December 31, 2024, which has gradually increased from 9.33 in December 2020 [5]

Under the leadership of Chair and CEO Brian T. Moynihan, BAC has delivered record earnings and significant capital returns to shareholders while maintaining a focus on responsible growth [3] [5]. The company's management team is diverse and experienced, with 38% of board members being women and 62% being racially, ethnically, and gender diverse, providing a broad range of perspectives for strategic decision-making [5]. Their decade-long focus on "Responsible Growth" has positioned the bank to be a source of stability during challenging economic conditions while continuing to support communities and deliver consistent results for shareholders [4].

Based on DCF analysis, BAC's estimated intrinsic value is approximately $70.71 per share, suggesting the stock is currently undervalued by about 39% compared to its market price of around $43 [1]. Using an alternative DCF model based on earnings rather than free cash flow, GuruFocus calculates BAC's intrinsic value at $85.20, indicating a margin of safety of 46.53% [5]. The stock trades at a price-to-equity ratio that is competitive within the banking sector, though valuation metrics should be considered alongside other financial indicators and the broader economic environment affecting the banking industry [1].

BAC faces several key risks, including potential economic downturns, regulatory changes, and increasing competition from both traditional banks and fintech disruptors [1]. While the bank benefits from rising interest rates through improved net interest margins, it remains vulnerable to interest rate volatility and inflation impacts, which could affect profitability [1]. Additionally, cybersecurity threats and technological disruption present ongoing challenges that require continuous investment and adaptation to maintain market position [1].

Based on the comprehensive analysis, BAC presents an attractive investment opportunity with its strong financial foundation, diversified business model, and current undervaluation relative to intrinsic value estimates. The company's consistent focus on responsible growth, technological innovation, and strong leadership position it well for long-term success despite competitive pressures and economic uncertainties. With a significant margin of safety at current price levels, BAC warrants a BUY recommendation for investors seeking exposure to the financial sector.