Discounted Cash Flow

Bank of America Corp. /De/

BAC · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $83.7b $17.9b $18.3b 21.4% $1.58
2017 $87.4b (4.4%) $18.2b (1.8%) $10.4b (-43.2%) 20.9% (-2.4%) $1.63 (3.2%)
2018 $91.2b (4.5%) $28.1b (54.4%) $39.5b (279.9%) 30.8% (47.8%) $2.64 (62.0%)
2019 $91.2b (-0.0%) $27.4b (-2.5%) $61.8b (56.3%) 30.1% (-2.5%) $2.77 (4.9%)
2020 $85.5b (-6.3%) $17.9b (-34.8%) $38.0b (-38.5%) 20.9% (-30.4%) $1.88 (-32.1%)
2021 $89.1b (4.2%) $32.0b (78.7%) $-7.2b (-118.9%) 35.9% (71.5%) $3.60 (91.5%)
2022 $95.0b (6.6%) $27.5b (-13.9%) $-6.3b (12.0%) 29.0% (-19.2%) $3.21 (-10.8%)
2023 $98.6b (3.8%) $26.5b (-3.7%) $45.0b (811.0%) 26.9% (-7.2%) $3.10 (-3.4%)
2024 $101.9b (3.4%) $27.1b (2.3%) $-8.8b (-119.6%) 26.6% (-1.0%) $3.25 (4.8%)
2025 $113.1b (11.0%) $30.5b (12.4%) $12.6b (243.2%) 27.0% (1.3%) $3.86 (18.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model