Bank of America Corporation (BAC) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.89

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

0.89

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$60.42

TTM EPS

$4.34

P/E Ratio

13.92

Growth Rate

15.6%

5-Year EPS CAGR

Sector

Financial Services

Banks - Diversified

Calculated

7/22/2026

12:42:47 AM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

1.03

25th Percentile

0.49

75th Percentile

1.59

BAC PEG (0.89) vs Industry Median (1.03): 14% discount

Symbol	Company	PEG	P/E	Growth	vs BAC
WFC	Wells Fargo & Company	0.17	12.5	72.4%	-81%
NU	Nu Holdings Ltd.	0.49	21.5	43.9%	-45%
JPM	JPMorgan Chase & Co.	0.82	14.6	17.7%	-8%
GS	The Goldman Sachs Group, Inc.	1.03	16.3	15.7%	+16%
TD	The Toronto-Dominion Bank	1.14	14.2	12.5%	+28%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Bank of America Corporation (BAC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BAC

Compare with peers

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Bank of America Corporation (BAC) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on BAC

Compare with peers

Explore