Analysts forsee lower revenue Bank of America

Next monday Bank of America will publish her Q4-results. According the consensus of the estimates the revenue over the past book year will be around 84,13 billion dollars. This is slightly less then the 2014's revenue of 89,8 billion dollars. The consensus of the analysts for 2015 is a net profit of 15 billion dollars.

For 2015 most of the analyst expect an earnings per share of 1,35 dollars. Based on this estimate the price/earnings ratio is at 10,93.

Per share the analysts expact a dividend of 19 cents. The dividend yield equals 1,29 percent. The average stock in the banking sector has a dividend yield of around 1,07 percent.

2009 worst year for Bank of America


The matrix above shows Bank of America's historical returns expressed in the different entry years in the left axis.

The year 2009 was with a price loss of 75 percent the worst year investors. 2014 was with a return of 49 percent by far the best year since 2008. Who bought the share in 2008 (price at that time 289,00 dollars) now has a price loss of 95 percent.

The stock now trades at 14,75 dollars. This equals 7 times the 2014's earnings per share.


The graph above shows the developments of Bank of America's stock price (blue) and revenue (red) for the period 2008 till 2015 (the analyst's expectations. It seems that the bank's revenue hardly is connected with the stock price: the correlation equals -0,52.

Highlights banking sector


Bank of America's book value/price (also book to price ratio) equals 1,55. The bank's CAPE equals 1.08. The stock now trades at 14,75 dollars. This equals 7 times the 2014's earnings per share.

The Bank of America stock is covered by 7 analysts (based on fundamental analysis). The average target price for Bank of America is at 18,33 dollars. This is 24,29 percent more then the current stock price of 14,75 dollars. From the sector banking sector the analysts think Van Lanschot NV, JP Morgan Chase and Bank of America are mostly undervalued.

The three most recent recommendations for the banking sector are from Jefferies & Co. (buy, 18,00 dollars), Robert W. Baird (buy, without target price) and Barclays (hold, 20,00 dollars).