This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Bank of America's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $12.197. Bank of America's 10-Year median PS Ratio is 2.9671. Therefore, the Median PS Value for today is $36.19.
As of today (2024-04-24), Bank of America's share price is $38.32. Bank of America's Median PS Value is $36.19. Therefore, Bank of America's Price to Median PS Value for today is 1.06.
The historical rank and industry rank for Bank of America's Median PS Value or its related term are showing as below:
BAC'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.93 Med: 1.43 Max: 2
Current: 1.06
During the past 13 years, the highest Price to Median PS Value of Bank of America was 2.00. The lowest was 0.93. And the median was 1.43.
BAC's Price-to-Median-PS-Value is ranked worse than 72.58% of 952
companies
in the Banks industry
Industry Median: 0.855
vs BAC: 1.06
Bank of America Median PS Value Historical Data
The historical data trend for Bank of America's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Bank of America's Median PS Value
For the Banks - Diversified subindustry, Bank of America's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bank of America's Price-to-Median-PS-Value Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bank of America's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Bank of America's Price-to-Median-PS-Value falls into.
Bank of America Median PS Value Calculation
Bank of America's Median PS Value for today is calculated as
10-Year Median PS Ratio is 2.9671.
Bank of America's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.197.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bank of America (NYSE:BAC) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Bank of America's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
38.32
/
36.19
=
1.06
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bank of America Median PS Value Related Terms
Thank you for viewing the detailed overview of Bank of America's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Bank of America (Bank of America) Business Description
Bank of America is one of the largest financial institutions in the United States, with more than $2.5 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily U.S.-focused.
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