MeritValue

BANK OF AMERICA CORP /DE/

BACdata completeness 88%19 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

BANK OF AMERICA CORP /DE/ earns about 21% on invested capital, and has bought back 10% of its shares over 5 years. The applicable estimate puts fair value near $37.14 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$89.1B1$95B2$102.8B3$105.9B3$113.1B3
Net income$32B4$27.5B5$26.3B6$27B6$30.5B6
Operating cash flow−$7.19B7−$6.33B8$45B9−$8.81B9$12.6B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$280.1B10$285.9B11$315.3B12$307.5B13$338.2B13
Cash & equivalents$348.2B14$230.2B15$333.1B15$290.1B15$231.8B15
Diluted shares8.56B8.17B8.08B7.94B7.68B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$394.8
your share of equity
Profit it earned you last year
$39.72
Free cash flow it threw off
—
Debt you’d be carrying
$440.33

10 shares is a claim on $394.8 of net worth that earned you $39.72 last year, against $440.33 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
21% avg · 5y
FY21 18%FY22 14%FY23 31%FY24 23%FY25 19%

It earned an average 21% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−10% shares · 5y

Share count is down 10% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 21% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$37.14
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$27.5B
  • growthAssumed0.0%
Graham Number
$58.18
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000070858-24-000122 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000070858-25-000139 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000070858-26-000157 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000070858-24-000122 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000070858-25-000139 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000070858-26-000157 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000070858-24-000122 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000070858-25-000139 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000070858-26-000157 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000070858-23-000092 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0000070858-24-000122 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0000070858-25-000139 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0000070858-26-000157 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0000070858-25-000139 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  15. 10-K · period ending 2022-12-31 · accession 0000070858-26-000157 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)