Bank of America CAPE ratio

Bank of America’s CAPE ratio, or Cyclically Adjusted Price-to-Earnings ratio, evaluates the stock’s valuation by comparing its current price to its inflation-adjusted earnings over the past 10 years. A high CAPE ratio suggests the stock might be overvalued, while a low ratio indicates potential undervaluation. For Bank of America, the CAPE ratio reflects not only its financial performance but also broader economic conditions, such as interest rates and credit markets. Investors use this metric to assess long-term value rather than short-term price fluctuations.