marketsupplychain.com -- Deep Research Dashboard

Bank of America Corporation (BAC)

The deposit-franchise machine, the NII tailwind, and a fully-priced stock

Not investment advice. This dashboard is OSINT research only, point-in-time as of 2026-06-29. Prices, market cap, and all forward estimates move fast. See the full article for methodology, sourcing, and data-quality flags.

Key metrics (Q1 2026 / 2026-06-29)

Price
$57.88
NYSE, 2026-06-29
Market cap
$412.7B
7.13B diluted shares
P/TBV
2.01x
10yr range 1.31-2.04x
TBV/share
$28.84
Q1 2026, +7% YoY
ROTCE
16.0%
Q1 2026 annualized
NII (Q1)
$15.7B
+9% YoY; FY2025 $60.1B
NIM (FTE)
2.07%
+8bps YoY; ex-GM 2.55%
CET1 ratio
11.2%
vs 10.0% floor
Efficiency
~61%
vs JPM ~51%
Div yield
~1.9%
point-in-time
Deposit cost
1.47%
blended; consumer 0.51%
HTM loss
$81B
pre-tax, economic only

Rating and sub-scores

Overall rating
Hold
Score: +1  |  Valuation: Overvalued

Sub-score breakdown

Valuation -1
Growth +2
Quality +1
Risk -1
Momentum 0
Total +1 (Hold)

Thesis summary

Bank of America is a high-quality, still-growing franchise - an elite low-cost deposit moat and a multi-year NII repricing tailwind are lifting ROTCE toward a 17-18% target - but the stock trades at ~2.0x tangible book, the top of its own 10-year range at an all-time high, where the 16% run-rate is already fully priced. A great company at a fully-priced stock: the reward on flawless execution is roughly matched by the downside of a normal cyclical reversion, so it reads as a Hold.

Illustrative price paths (not price targets)

Scenario Today 6 months 1 year 3 years 5 years
Bull $57.88 $64 $68 $77 $90
Base $57.88 $60 $62 $67 $77
Bear $57.88 $51 $48 $50 $56

Illustrative scenarios, not price targets or investment advice. Levels derived from stated TBV-growth and multiple assumptions (rating.json, 2026-06-29).

Scenarios in detail

Bull case

6mo: A hike lands, credit stays benign, multiple pushes to ~2.1x as the 52-wk high breaks (~$64).

1yr: ROTCE to 17-18%, P/TBV holds ~2.1-2.15x, buyback accretion (~$68, inside the $67-71 high-target band).

3yr: Durable 17-18% ROTCE, Basel relief funds accelerated buyback, multiple holds ~2.1x (~$77).

5yr: 17-18% ROTCE sustained, premium multiple held, share count shrinking; ~$42 TBV x ~2.1x (~$90).

Base case

6mo: NII tracks upper half of +6-8% guide, ROTCE ~16%, multiple ~2.0x, stock grinds up on TBV accretion (~$60).

1yr: Guide delivered, ROTCE ~16%, multiple compresses 2.0x -> ~1.95x; mild upside near the ~$63-64 sell-side mean (~$62).

3yr: Repricing runway runs, ROTCE ~15-16%, ~1.9x multiple, ~7%/yr TBV compounding does the work (~$67).

5yr: A solid mid-single-digit total-return compounder; ~$40.4 TBV x ~1.9x (~$77).

Bear case

6mo: Office/CRE losses start crystallizing, recession scare compresses multiple toward ~1.75x (~$51).

1yr: Double-hit begins - Fed cuts, NII decelerates, provisions build, ROTCE to ~14%, multiple to ~1.6x (~$48).

3yr: Full cycle turned 2027-28, ROTCE reverts to ~13%, multiple parked near ~1.45-1.5x median; roughly dead money (~$50).

5yr: Cycle-peak premium given back; ~flat over 5 yrs while the bank stays fine; ~$36.8 TBV x ~1.55x (~$56).

Peer valuation comparison (point-in-time 2026-06-29)

Ticker P/TBV ROTCE CET1 Efficiency Rating (BAC only)
BAC2.01x16.0%11.2%61%Hold
JPM2.87x23.0%~15%~51%--
WFC~1.95x14.5%~11.8%~64%--
C~1.35x13.1%12.7%~66%--
USB~2.00x17.0%~10.5%~60%--
MS3.95x27.0%--~72%--
GS2.92x21.3%~14.6%~63%--
TFC1.69x13.8%~10.2%~61%--
PNC~2.25x~15%~10.5%~63%--

Peer P/TBV and ROTCE: press-tier, point-in-time estimates (2026-06-29). See gates.md for sourcing. CET1/efficiency ratios approximate. Not investment advice.

Key sub-score rationale

Valuation (-1)

~2.0x P/TBV is the TOP of BAC's own 10-yr range (1.31-2.04x, median ~1.59x) at an all-time-high price; 2.0x already fully discounts the 16% run-rate ROTCE, leaving no margin of safety - ~18% upside on flawless 17-18% execution vs ~25-30% downside on a normal reversion to ~13% ROTCE.

Growth (+2)

Six straight quarters of NII growth, FY2026 guide RAISED to +6-8%, a ~$450-490B/~2% repricing runway through ~2031 that lifts NII largely independent of the Fed, GWIM balances +10% YoY, and ROTCE inflecting 12.9% -> 14.2% -> 16.0%.

Quality (+1)

Elite low-cost deposit moat (0.51% consumer cost, 26% noninterest-bearing, 92% primacy, sub-15% beta through 525bps of hikes), ROTCE well above ~10.5-11% COE, strong capital generation - tempered by a 61% efficiency ratio (vs JPM ~51%) and an $81B HTM cost-of-carry suppressing the 2.07% NIM.

Risk (-1)

Two-way asset sensitivity (-$2.0B NII per -100bps) creates a recession double-hit (NII falls AND provisions build); $81B HTM unrealized loss is ~30% of TCE (economic, excluded from CET1); CRE/office maturity wall lands H2 2026-2027 - offset by a CET1 fortress (11.2% vs 10.0% floor), cleared CCAR, SCB frozen to Oct 2027, and a sticky insured deposit base.

Momentum (0)

Strong price trend (+25% 1yr, above 50/200-day MAs) and positive revisions (raised guide, lifted targets, 16 Strong Buy) net against an overbought all-time-high entry (RSI 71), a muted +0.3% reaction to a clear Q1 beat, and seven straight quarters of Berkshire selling - roughly neutral.