Fundamental Analysis of Bank of America Corp. Stock

The thesis focuses on a fundamental stock analysis of Bank of America Corporation. The objective of the thesis is to estimate the intrinsic value of the company’s stock and, based on the results, formulate an investment recommendation. The thesis uses a top-down approach, within which the macroeconomic environment of the United States is analyzed first, followed by the U.S. banking sector and then Bank of America itself. he company analysis includes an assessment of the business model, financial performance, capital adequacy, liquidity, asset quality, dividend policy and selected risks. The stock is valued using the dividend discount model, the free cash flow to equity model, the excess returns model, and relative valuation. The results of the individual models are not fully conclusive, as some methods indicate overvaluation while others indicate undervaluation of the stock. Given the mixed valuation results, the company’s stable position and the persisting macroeconomic and industry-related risks, the final investment recommendation is to hold the stock.