- By Kyle Ferguson
John Buckingham (Trades, Portfolio), CEO of Al Frank Asset Management and editor of the Prudent Speculator newsletter, purchased a stake in Bank of America (BAC) during the first quarter.
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Warning! GuruFocus has detected – Warning Sign with BAC. Click here to check it out.
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The intrinsic value of BAC
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services.
Bank of America has a market cap of $–4—.57 billion, a P/E ratio of –….95, an enterprise value of $—45.–5 billion, a P/B ratio of ….6‘, and a dividend yield of –.44.
According to GuruFocus, Bank of America has a 6/–… financial strength rating and a 5/–… profitability and growth rating. It is possible that Buckingham� decided to purchase —64,46‘ shares of Bank of America at the end of the first quarter because the company has increased its EBITDA growth by 5—.‘…% over the previous five years, which indicates a healthy situation for the company moving forward.
Bank of America also has a $—–.…5 Graham Number according to GuruFocus. The Graham number was used by the father of value investing Benjamin Graham, who was able to mentor the most successful investor of all time,� Warren Buffett (Trades, Portfolio). Buffett is currently ranked as the third richest person in the world according to Forbes.com with an estimated net worth of $66.4 billion dollars. The Graham number gives Buckingham a healthy margin of safety because he purchased his stake in Bank of America at $–‘.88 per share. Below is a Peter Lynch Chart for Bank of America.
Cheers to your investment success.
This article first appeared on GuruFocus.
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Warning! GuruFocus has detected 1 Warning Sign with BAC. Click here to check it out.
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The intrinsic value of BAC