Bank of America (XSWX:BAC) 1-Year Sharpe Ratio: 1.25 (As of Jul. 14, 2026)

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XSWX:BAC Bank of America Corp XSWX:BAC
78 GF Score
Price CHF48.07
GF Value CHF40.39
! 7 Warning Signs
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What is Bank of America 1-Year Sharpe Ratio?

Bank of America XSWX:BAC 78 1-Year Sharpe Ratio is 1.25 as of Jul. 14, 2026. GuruFocus rates XSWX:BAC with a GF Score™ of 78/100 and a GF Value™ of CHF40.39. The stock has 7 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-14), Bank of America's 1-Year Sharpe Ratio is 1.25.

Bank of America  (XSWX:BAC) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Bank of America 1-Year Sharpe Ratio Related Terms

XSWX:BAC vs WFC, C, BNY: 1-Year Sharpe Ratio Comparison

For the Banks - Diversified subindustry, Bank of America's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Banks Industry

For the Banks industry and Financial Services sector, Bank of America's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Bank of America's 1-Year Sharpe Ratio falls into.


XSWX:BAC
78GF Score
Bank of America Corp XSWX:BAC
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Bank of America 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.25 mean?
Bank of America (XSWX:BAC) has a 1-Year Sharpe Ratio of 1.25 as of Jul. 14, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Bank of America and its competitors.
Is Bank of America's 1-Year Sharpe Ratio too high?
Bank of America's current 1-Year Sharpe Ratio is 1.25. Overall, Bank of America has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Bank of America's 1-Year Sharpe Ratio compare to WFC and C?
Bank of America's 1-Year Sharpe Ratio of 1.25 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Banks company?
A good 1-Year Sharpe Ratio depends on the Banks industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Bank of America and its competitors. Bank of America's current 1-Year Sharpe Ratio is 1.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Bank of America (XSWX:BAC) has a current 1-Year Sharpe Ratio of 1.25. The stock's GF Value™ is CHF40.39, compared to a current price of CHF48.07 — trading 19% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.25. Bank of America's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Bank of America (XSWX:BAC), the current 1-Year Sharpe Ratio is 1.25 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Bank of America (XSWX:BAC) Overvalued in 2026?

Based on GuruFocus' analysis, Bank of America stock appears to be overvalued. The current stock price of CHF48.07 is trading 19% above its estimated GF Value™ of CHF40.39.

Key valuation signals for XSWX:BAC:

  • 1-Year Sharpe Ratio: 1.25
  • GF Value™: CHF40.39 vs. price of CHF48.07 (19% above fair value)
  • GF Score™: 78/100 with 7 warning signs

No single metric tells the full story. See the XSWX:BAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bank of America Business Description

Address 100 North Tryon Street, Bank of America Corporate Center, Charlotte, NC, USA, 28255
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
78GF Score

Get the complete analysis for XSWX:BAC

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF48.07
Price
CHF40.39
GF Value