Bank of America Corporation PFD SER B 7%

AI-generated fair value estimate for this company.

Method: Perpetuity dividend-discount valuation (appropriate for a fixed-rate cumulative perpetual preferred rather than a common-equity DCF): $7.00 annual dividend (7.00% coupon on $100 par) divided by a 6.20% required yield (estimated from comparable investment-grade bank perpetual preferred yields, e.g. BancFirst's BANFP trading near a 6.70% yield for lower-rated regional-bank credit) = $112.90/share.

Reasoning: BACRP is a perpetual, non-growth, fixed-income-like preferred share of Bank of America; its value is driven entirely by its fixed coupon and the market's required yield for BAC's very strong investment-grade credit rather than by projected cash-flow growth, so a dividend-discount/perpetuity model is the appropriate method rather than a DCF.