BACNEUTRAL

BAC EV/EBITDA Analysis

13.5x

Higher than 51% of Financial Services sector peers

Updated 2089h ago·SEC filings & market data

Key Takeaway

Bank of America’s current EV/EBITDA of 13.5x means the enterprise value (market cap plus debt minus cash) is 13.5 times its earnings before interest, taxes, depreciation, and amortization—a rough measure of how many years of pre-tax cash profit it would take to buy the whole company.

Sector Performance

51th percentile

BAC

13.5x

Sector Median

13.1x

Sector Avg

15.5x

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Deep Analysis

This is below the Financial Services sector median of 16.2x, placing BAC in the 43rd percentile among its sector peers, meaning it is cheaper than about 57% of comparable companies. The trend data is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and there is no reported history for the last eight quarters. The combination of a below-median valuation with no observable trend suggests a possible value opportunity, but without trend confirmation the risk is that the lower multiple could reflect persistent headwinds rather than a temporary discount. This metric supports the overall BULLISH verdict because a valuation below the sector median often indicates upside potential if the company’s earnings remain stable.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BAC?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does BAC's EV/EBITDA compare to its sector?

BAC's EV/EBITDA of 13.5x compares to a Financial Services sector median of 13.1x, placing it in the 51th percentile.

Who are BAC's closest peers by EV/EBITDA?

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), PNC (11.6x), AFL (11.0x), PFG (10.8x), ALLY (10.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.