Bank of America now trading with lowest CAPE-ratio of US megacaps

Moderate lower revenue Bank of America expected

For this year most of the analyst expect a total sales of 81,71 billion dollars. This is slightly lower than the 2015's revenue of 82,51 billion dollars.

Historical revenues and results Bank of America plus taxations 2016


The analysts foresee for 2016 a net profit of 13,7 billion dollars. For this year most of the analysts expect a profit per share of 1,26 dollars. Based on this the price/earnings-ratio equals 11,83.

2013 best, 2009 worst year


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

The year 2009 is (measured since 2008) with a price loss of 66 percent the worst year. 2013 is till now with a gain of 109 percent the best year for the stock. Who bought the stock in 2008 (price at that time 41,26 dollars) has now a loss of 64 percent.

Core figures banking sector


Bank of America 's book to market ratio is at 1,66. The banking sector now trades with an average Shiller PE (CAPE) of 21.89. Based on the number of outstanding shares Bank of America 's market capitalization equals 154,77 billion dollars.

Bank of America is being covered by 7 analysts (only based on fundamental analysis). The average target price for the stock is at 18,3 dollars. This is around 24 percent more than the current stock price of 14,91 dollars.

The average of the dividends estimates is at 0,25 cents. Bank of America 's dividend return consequently equals 1,68 percent. On average the banking sector yields dividend return of around 1,83 percent.

Historical dividends and dividend returns Bank of America Dividendbankofamerica

The graph above shows the different returns since 2008. The green line is the total return of the reinvested dividends, the blue line is the price return and the red part is the total return: price returns plus dividend returns.

Dividend rather insignificant for investors

Because of the negative returns of the past years the dividend payments are only a rather small benefit for the investors. The buy & hold investor who bought the stock in 2008 now has a loss of 64 percent.

Last year's dividends were with 1,15 percent per year below average. The total dividend return since 2008 is a quite moderate 9 percent extra return for the investors. The influence of the reinvested dividends on the total return is for the buy & hold investor not really dominant.

The stock closed last Friday at 14,91 dollars.

This is 10 times the 2015's earnings per share. News Wire & Equity Research: +31 084-0032-842

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