BofA Finance LLC (BAC): what the price assumes

In the published model solve dated 2026-Q2, anchored at $62.30, BofA Finance LLC (BAC) is priced for 13.7% return on equity. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-08-07.

Generated: 2026-08-30 · Source: https://boothcheck.com/report/BAC

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

Solve inputs: computed at a 10.1% cost of equity; ROE searched up to the 12.7% ROE ceiling.

How unusual the bet is: within-range

Valuation X-Ray

The price is supported by asset-based value. A value/asset-supported name, not a pure growth bet.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Asset

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 6.9%); the inversion above states its own rate.

Per-Model Detail (n=4)

Economic-Unit Decomposition (Sum Of The Parts)

The issuer is a funded financial business. Debt, interest, and cash flows are operating inputs, so industrial EV, net-debt, WACC, and free-cash-flow lenses do not apply; value the common-equity claim with book, earnings, capital, and payout economics.

No unit-level total common-equity value is stated. Each financial unit requires supported standalone common equity, normalized earnings, capital adequacy, and payout capacity. Consolidated debt, interest, and cash are operating balances, not an enterprise-to-equity bridge; company-level book, earnings, capital, and payout lenses remain the coherent cross-checks.

Solvency

Deposit/float-funded balance sheet: debt is funding, not corporate leverage, and GAAP operating cash flow follows loan flows. Net-debt, interest-coverage, and cash-burn lenses do not apply. The solvency frame for a financial is regulatory capital and payout capacity (CET1, stress buffer, dividends plus buybacks against earnings).

Bullet Takeaways

• The June 2026 quarter produced net income of $9.1 billion on revenue of $31.6 billion, with all four business segments growing net income by double digits and the efficiency ratio improving 359 basis points to 59%.
• Capital return has accelerated: the quarterly dividend was raised 14% to $0.32 a share on July 24, 2026, and $13.2 billion of stock was repurchased in the first half, which is why the share count has been shrinking about 2.8% a year since mid-2022.

Bull Case

The market pays roughly 1.6 times book for this bank, and the standard objection to that is arithmetic: a price like that requires a return on capital higher than most banks manage for long, and Bank of America has historically not been one of the high-return franchises. That objection is worth taking seriously. It is also getting harder to make with a straight face. In the June 2026 quarter the bank earned a 12.7% return on average common shareholders' equity and 17.0% on average tangible common equity, against 10.1% and 13.6% in the same quarter a year earlier.

The mechanism behind the improvement is dull and therefore durable. Revenue rose 15% to $31.6 billion while noninterest expense rose 8% to $18.6 billion, which produced 6.6 points of operating leverage and pulled the efficiency ratio down 359 basis points to 59%. The efficiency ratio is simply what the bank spends to earn a dollar of revenue, so 59 cents on the dollar against 63 cents a year ago is four cents of every revenue dollar moving from the expense line to the profit line. On a revenue base above $31 billion a quarter, four cents compounds quickly.

What funds all of it is the deposit base, and its stickiness is the single most underrated fact about this company. The 10-K reports that approximately 70 percent of consumer and small business deposits and 81 percent of U.S. deposits in Global Banking were held by clients who have had accounts with us for 10 or more years. Average deposits reached $2.02 trillion in the quarter, the twelfth consecutive quarter of sequential average growth, spread across 38.7 million consumer checking accounts of which 92% are the customer's primary account. Deposits held for a decade by people who bank nowhere else do not chase rate. That is what a funding advantage actually looks like on the ground, and it is why the bank can hold long-dated assets that a flightier depositor base would make impossible.

Every segment contributed rather than one carrying the others. Consumer Banking earned $3.281 billion at a 51% efficiency ratio and a 29% return on average allocated capital. Wealth management revenue rose 16% to $6.9 billion on assets under management of $2.3 trillion, up 17%. Investment banking fees across the corporation rose 50% to $2.1 billion, and sales and trading revenue rose 33% to $7.1 billion, with equities up 70% to $3.6 billion and a seventeenth consecutive quarter of year-over-year growth. Growth of that breadth is unusual: for context, the trailing-year revenue growth rates its largest peers have posted are considerably slower, with JPM at 3.3%, WFC at 4.2% and C at 5.6%.

The capital position turns that earnings power into shareholder return rather than into a bigger balance sheet. Common equity tier 1 capital stood at $202 billion for a CET1 ratio of 11.2%, comfortably above the regulatory minimum, and $8.0 billion went back to shareholders in the quarter. On July 24, 2026 the board raised the quarterly dividend 14% to $0.32 a share, and $13.2 billion of stock was repurchased in the first half under a $40 billion authorization with roughly $17 billion still available. A share count falling about 2.8% a year is buyback deployment showing up in the one place it cannot be faked, and it means a holder's claim on those earnings grows even in a year when the earnings do not.

Bear Case

The most consequential number in this bank's accounts does not appear in the earnings release. That is a shortfall of roughly 65 billion dollars on two issuers, inside a portfolio of agency and Treasury securities whose total amortized cost was $856.7 billion. Under the accounting rules none of it has to be recognized so long as the securities are held to maturity, and the bank has every intention of holding them. The intention is not the risk. The risk is the specific scenario in which deposits leave faster than the securities mature and the choice of whether to sell stops being the bank's to make. Set that gap against common equity tier 1 capital of $202 billion and the arithmetic explains itself.

The deposit side of that same equation has been quietly deteriorating for years. Noninterest-bearing accounts, the ones that cost the bank nothing at all, were about a quarter of total deposits at the end of 2025, down from 27% a year earlier. Each point that migrates from a free checking account into something that pays interest is a permanent reduction in the funding advantage the bull case rests on. The migration is slow, which is precisely why it is easy to ignore for several years in a row.

Then there is what the price asks for. Paying about 1.6 times book means underwriting a return on equity above 11.7%, sustained for something on the order of four decades, and the requirement does not resolve into a specific finite number: it runs past the point where the historical record has anything to say. On a trailing basis the bank earns about 10.5%. Its cost of equity is around 10.3%. Of the banks that have reached this level of return, only about 63% held it even a decade. The consequence is mechanical rather than dramatic: a bank earning exactly what its shareholders require is worth its book value and nothing more, so the entire premium above book depends on the excess return persisting. Its price-to-book already sits in the upper half of the peer group, which means there is no valuation cushion to absorb a disappointment.

The quality of the quarter deserves a second look for the same reason. Global Markets contributed $2.6 billion of the $9.1 billion of net income, with sales and trading revenue up 33%, equities up 70% and investment banking fees up 50%. Those are the three most cyclical lines a universal bank owns. They are wonderful in a good year and they are the first thing to go in a bad one, and a return on equity built partly on them is not the same animal as one built on consumer deposits and card spend.

Credit is behaving well, which is normal at this point in a cycle and tells you less than it appears to. Provision for credit losses was $1.4 billion and net charge-offs were $1.4 billion, both slightly lower than a year earlier. Inside the consumer business, though, the risk-adjusted margin on the card portfolio fell to 6.5% from 7.1% a year ago while average card balances grew to $103.6 billion from $100.0 billion. More balances at a thinner risk-adjusted spread is the shape credit deterioration takes long before it shows up in charge-offs. The quarter also carried a net reserve release of $23 million against a build of $82 million a year earlier, and a release is a decision about the future dressed as a result from the past.

None of this makes Bank of America fragile. It makes the price specific. The bull case and the bear case agree that the franchise has improved and that capital is being returned aggressively. They disagree about whether a return on equity that has just crossed into the low teens is a new level or the top of a cycle.

Valuation

For most companies the valuation argument starts with earnings. For a bank it starts with capital, because a bank is worth whatever it can earn on the equity it is required to hold. $63.26 a share against a reported book value per common share of $39.34 on June 30, 2026 works out to roughly 1.6 times book. Everything else in this section is an argument about whether the returns justify that.

What the price requires is a sustained return on equity above 11.7%, held for something like four decades. That is not a forecast the record can support or refute in the usual way, because it runs past the horizon over which anything has been measured; the honest statement is that the requirement is a bound rather than a number. For scale, the bank has recently been earning around 10.5% on a trailing basis, and the June quarter came in comfortably above that. What shareholders require of the same capital works out near 10.3 percent. The gap is not large. The question is how long it stays closed.

The methods themselves behave unusually here, and in this case that works in the bank's favour. Most of the standard valuation machinery, built for companies whose borrowings are a burden rather than a raw material, has nothing to say about a balance sheet funded by 2.02 trillion dollars of deposits. What remains is the book-value-and-profitability approach, which lands close to the quote with the price about 11% above it, and the earnings-power family, which simply capitalizes what the bank earns today; today's quote stands about 35% above that family's central estimate. That pattern is the signature of an asset-supported valuation rather than a growth bet: the price is defended by what the bank owns and earns today, not by an assumption about what it becomes.

Peer position is where the argument gets less comfortable. The bank's price-to-book sits in the upper half of its group, which is a change from the discount this franchise carried for most of the last decade of its recovery. The revenue picture partly explains why: the June quarter grew 15% against the year-ago period, whereas the trailing-year growth rates at the largest peers run at 3.3% for JPM, 4.2% for WFC and 5.6% for C. Paying above the group is defensible when the growth is above the group. It stops being defensible the moment the trading and investment banking lines that produced much of that growth revert.

The balance sheet frame that matters for a bank is capital and payout capacity, and both are strong. CET1 capital of $202 billion supports an 11.2% ratio, average Global Liquidity Sources ran at 947 billion dollars, and $8.0 billion went out to shareholders in the quarter through dividends and repurchases. The dividend was raised 14% to $0.32 a share in July, roughly $17 billion of repurchase authorization remains, and the share count has fallen about 2.8% a year since mid-2022. What that capital cannot neutralize is the unrealized shortfall sitting in the agency securities portfolio, which is the one item on this balance sheet that converts a liquidity event into a capital event.

Catalysts

The clearest recent signal came from the board rather than from operations. On July 24, 2026 Bank of America raised its quarterly common dividend 14% to $0.32 a share, payable September 25, 2026 to holders of record on September 4. The company also confirmed it continues to repurchase stock under a $40 billion authorization in place since August 1, 2025, having bought back $13.2 billion and paid $4 billion of dividends in the first half of 2026, with approximately $17 billion of the authorization remaining as of June 30. Dividend increases of that size are approved against a capital plan, so the raise is management telling the market what it expects its capital position to look like for the next several quarters.

The operating question for the next print is whether the markets businesses hold. Second-quarter results, released July 14, 2026, showed sales and trading revenue up 33% year over year, equities up 70%, and investment banking fees up 50%, alongside a comment from Brian Moynihan that pipelines remain strong and commercial borrowing has picked up. Investment banking is the most forecastable of those only in the sense that pipelines convert or they do not; the third-quarter print is the next observation on which way it went.

The efficiency ratio is the quieter thing to track and it has been moving in a straight line: 63% in the second quarter of 2025, then 60%, 61%, 61% and 59% in the June 2026 quarter. Management has coupled that with continued spending on technology and brand, including the launch of BofA Rewards on May 27, 2026, which had reached 13.3 million enrolled clients by quarter end with around 2 million of those enrolling during the quarter. Whether the ratio keeps falling while that spending continues is the single cleanest test of whether this quarter's returns were structural or cyclical.

Peer Cohorts (Per Segment, With Filing Citations)

Consumer Banking (reported)

• JPM (JPMORGAN CHASE & CO)
• FY2025 10-K: …$ 9,857 $ 8,837 Total loans 1,493,429 1,347,988 Firmwide nonaccrual loans to total loans outstanding 0.66 % 0.66 % The following table provides information about the Firm's net charge-offs. December 31, (in millions, except ratios) 2025 2024 Net charge-offs $ 9,849 $ 8,638 Average retained loans 1,335,675 1,271,344…
• FY2025 10-K: $1.4 billion, and consisted of: JPMorgan Chase & Co./2025 Form 10-K 55 • $1.1 billion in consumer , driven by loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and • $350 million in wholesale , driven by a net…
• WFC (WELLS FARGO & COMPANY/MN)
• FY2025 10-K: …specific adjustments, such as funds transfer pricing for asset/liability management, shared revenue and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance consistently across the operating segments. Consumer…
• FY2025 10-K: …reflecting lower net charge-offs, partially offset by a higher change in allowance for auto loans driven by higher loan balances. Noninterest expense increased driven by: • higher advertising expense; • higher branch personnel expense; and • the impact of the transfer of certain business customers from the Commercial…
• C (Citigroup Inc)
• FY2025 10-K: …30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively. (4) See Note 15 for details on loan-to-value ratios for the mortgage portfolios and FICO scores for the U.S. portfolio. (5) Effective January 1, 2025, USPB changed its reporting for certain installment lending products that were transferred…
• FY2025 10-K: …origination costs, that are deferred and recognized as Interest income over the lives of the related loans. (4) Excludes $17 million of unallocated portfolio-layer cumulative basis adjustments at December 31, 2025. (5) Based on contractual terms. Repricing characteristics may effectively be modified from time to time…
• USB (US BANCORP \DE\)
• FY2025 10-K: , Commercial and Institutional Banking, and Consumer and Business Banking customers, including underwriting fees, standby letter of credit fees, non-yield related loan fees, loan and syndication fees, and revenue recognized on customer-related derivatives and sales of direct financing leases. The Company charges…
• FY2025 10-K: …on secured loans. These and other risk characteristics are reflected in forecasts of losses which are the primary factors in determining the allowance for credit losses for the consumer lending segment. The Company further disaggregates its loan portfolio segments into various classes based on their underlying risk…
• PNC (PNC FINANCIAL SERVICES GROUP, INC.)
• FY2025 10-K: …account data and statement information, card activation, card renewals, and card suspension and blockage. Interchange fees are earned when cardholders make purchases and are presented in Table 120 net of credit card reward costs, which are earned by customers when they make purchases. The PNC Financial Services…
• FY2025 10-K: …22 Segment Reporting for additional information on our business segments, including a description of each business. The PNC Financial Services Group, Inc. - 2025 Form 10-K 43 Retail Banking Retail Banking's core strategy is to build lifelong, primary relationships by creating a sense of financial well-being and ease…
• TFC (TRUIST FINANCIAL CORP)
• FY2025 10-K: 1-01 2025-12-31 0000092230 us-gaap:ConsumerPortfolioSegmentMember us-gaap:AutomobileLoanMember tfc:OtherLoanModificationsMember 2025-01-01 2025-12-31 0000092230 us-gaap:ConsumerPortfolioSegmentMember tfc:OtherConsumerLendingMember tfc:RenewalsMember 2025-01-01 2025-12-31 0000092230…
• FY2025 10-K: …2024-01-01 2024-12-31 0000092230 us-gaap:ConsumerPortfolioSegmentMember tfc:OtherConsumerLendingMember tfc:CapitalizationsMember 2024-01-01 2024-12-31 0000092230 us-gaap:ConsumerPortfolioSegmentMember tfc:OtherConsumerLendingMember us-gaap:PaymentDeferralMember 2024-01-01 2024-12-31 0000092230…

Global Wealth & Investment Management (reported)

• MS (MORGAN STANLEY)
• FY2025 10-K: …holds certain business-related investments. Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research. Wealth Management provides a comprehensive array…
• FY2025 10-K: …table above, primarily included within Securities-based lending and Other loans. Such loans are originated through our p rivate banking platform, are both secured and generally benefiting from full or partial guarantees from high or ultra-high net worth clients, which December 2025 Form 10-K 70 Table of Contents Risk…
• SCHW (SCHWAB CHARLES CORP)
• FY2025 10-K: …us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel1Member 2025-12-31 0000316709 schw:PledgedAssetLinesPortfolioSegmentMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2025-12-31 0000316709…
• FY2025 10-K: …by reviewing the integrity of the Company's financial statements and financial reporting processes, the qualifications and independence of the independent auditors and performance of the Company's internal audit function and independent auditors, compliance with legal and regulatory requirements, processes to assess…
• RJF (RAYMOND JAMES FINANCIAL INC)
• FY2025 10-K: …rjf:EquitiesETFsAndFixedIncomeProductsMember rjf:RjBankMember 2024-10-01 2025-09-30 0000720005 rjf:OtherOperatingSegmentsAndIntersegmentEliminationsMember rjf:EquitiesETFsAndFixedIncomeProductsMember 2024-10-01 2025-09-30 0000720005 rjf:EquitiesETFsAndFixedIncomeProductsMember 2024-10-01 2025-09-30 0000720005…
• FY2025 10-K: Member rjf:PrivateClientGroupMember 2023-10-01 2024-09-30 0000720005 us-gaap:OperatingSegmentsMember rjf:AccountAndServiceFeeRevenueMember rjf:CapitalMarketsMember 2023-10-01 2024-09-30 0000720005 us-gaap:OperatingSegmentsMember rjf:AccountAndServiceFeeRevenueMember rjf:AssetManagementSegmentMember 2023-10-01…
• AMP (AMERIPRISE FINANCIAL INC)
• FY2025 10-K: 25-01-01 2025-12-31 0000820027 us-gaap:OperatingSegmentsMember amp:InvestmentAdviceTransactionAndOtherMember amp:AdviceAndWealthManagementMember 2025-01-01 2025-12-31 0000820027 us-gaap:OperatingSegmentsMember amp:InvestmentAdviceTransactionAndOtherMember amp:AssetManagementSegmentMember 2025-01-01 2025-12-31…
• FY2025 10-K: …amp:AdviceAndWealthManagementMember 2023-01-01 2023-12-31 0000820027 us-gaap:OperatingSegmentsMember us-gaap:InvestmentAdviceMember amp:AssetManagementSegmentMember 2023-01-01 2023-12-31 0000820027 us-gaap:OperatingSegmentsMember us-gaap:InvestmentAdviceMember amp:RetirementAndProtectionSolutionsMember 2023-01-01…

Global Banking (reported)

• JPM (JPMORGAN CHASE & CO)
• FY2025 10-K: …offers and lifestyle benefits. Auto originates and services auto loans and leases. Commercial & Investment Bank The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing,…
• FY2025 10-K: …Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services to clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as commercial real…
• C (Citigroup Inc)
• FY2025 10-K: …restructurings and corporate defense activities. • Corporate Lending consists of corporate and commercial banking, serving as the conduit for Citi's product suite to clients. In addition to earning net interest spread revenue on its Corporate Lending activities, Banking primarily generates investment banking fees,…
• FY2025 10-K: …current position in March 2021, and in October 2025 was appointed Chair of Citigroup's Board of Directors. Previously, she served as CEO of Global Consumer Banking from October 2019 to December 2020. Before that, she served as CEO of Citi Latin America from June 2015 to October 2019. She held a number of other roles…
• GS (The Goldman Sachs Group, Inc.)
• FY2025 10-K: …income attributed to transaction banking deposits. Other also includes investing activities related to our Global Banking & Markets activities. The table below presents our Global Banking & Markets assets. As of December $ in millions 2025 2024 Cash and cash equivalents $ 131,809 $ 143,041 Collateralized agreements…
• FY2025 10-K: 23. • Platform Solutions included a write-down related to GreenSky of $ 506 million and an impairment of goodwill of $ 504 million for 2023. 222 Goldman Sachs 2025 Form 10-K THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Segment Assets The table below presents assets by…
• WFC (WELLS FARGO & COMPANY/MN)
• FY2025 10-K: …specific adjustments, such as funds transfer pricing for asset/liability management, shared revenue and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance consistently across the operating segments. Consumer…
• FY2025 10-K: …us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember wfc:CommercialBankingMember 2025-01-01 2025-12-31 0000072971 us-gaap:OperatingSegmentsMember us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember wfc:CorporateAndInvestmentBankingMember 2025-01-01 2025-12-31 0000072971…
• MS (MORGAN STANLEY)
• FY2025 10-K: …and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Additional information related to our business segments, respective clients, and products and services provided is included under "Management's Discussion and Analysis of Financial Condition…
• FY2025 10-K: …2023-01-01 2023-12-31 0000895421 us-gaap:OperatingSegmentsMember us-gaap:InvestmentAdviceMember ms:InstitutionalSecuritiesSegmentMember 2025-01-01 2025-12-31 0000895421 us-gaap:OperatingSegmentsMember us-gaap:InvestmentAdviceMember ms:InstitutionalSecuritiesSegmentMember 2024-01-01 2024-12-31 0000895421…

Global Markets (reported)

• GS (The Goldman Sachs Group, Inc.)
• FY2025 10-K: …2024-01-01 2024-12-31 0000886982 gs:OtherCashInstrumentsMember gs:TradingCashInstrumentsAssetsMember 2025-12-31 0000886982 gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2025-01-01 2025-12-31 0000886982 gs:MarketMakingMember gs:TradingCashInstrumentsAssetsFairValueDisclosureMember 2025-01-01 2025-12-31…
• FY2025 10-K: …gs:TradingCashInstrumentsAssetsMember 2025-12-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member gs:TradingCashInstrumentsAssetsMember 2025-12-31 0000886982 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member gs:TradingCashInstrumentsAssetsMember 2025-12-31 0000886982…
• MS (MORGAN STANLEY)
• FY2025 10-K: …ms:CreditDerivativesSellingProtectionMember us-gaap:InternalInvestmentGradeMember ms:TotalIndexAndBasketCreditDefaultSwapsMember 2025-12-31 0000895421 ms:MoreThanOneAndWithinThreeYearsFromBalanceSheetDateMember ms:CreditDerivativesSellingProtectionMember us-gaap:InternalInvestmentGradeMember…
• FY2025 10-K: …us-gaap:ValuationTechniqueOptionPricingModelMember srt:WeightedAverageMember 2024-12-31 0000895421 ms:CommodityAndOtherContractsMember us-gaap:FairValueMeasurementsRecurringMember ms:MeasurementInputCrossCommodityCorrelationMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueOptionPricingModelMember…
• JPM (JPMORGAN CHASE & CO)
• FY2025 10-K: …jpm:SecuritizedLoansMember us-gaap:SubprimeMember 2025-01-01 2025-12-31 0000019617 us-gaap:ResidentialMortgageBackedSecuritiesMember jpm:SecuritizedLoansMember us-gaap:SubprimeMember 2024-01-01 2024-12-31 0000019617 us-gaap:CommercialMortgageBackedSecuritiesMember jpm:SecuritizedLoansMember 2025-12-31 0000019617…
• FY2025 10-K: …us-gaap:ExchangeClearedMember 2025-12-31 0000019617 us-gaap:CommodityContractMember us-gaap:ExchangeClearedMember 2024-12-31 0000019617 us-gaap:CommodityContractMember us-gaap:ExchangeTradedMember 2025-12-31 0000019617 us-gaap:CommodityContractMember us-gaap:ExchangeTradedMember 2024-12-31 0000019617…
• C (Citigroup Inc)
• FY2025 10-K: …us-gaap:FairValueInputsLevel3Member c:ValuationTechniqueModelbasedMember srt:WeightedAverageMember 2024-12-31 0000831001 us-gaap:ForeignExchangeContractMember c:MeasurementInputYieldMember us-gaap:FairValueInputsLevel3Member c:ValuationTechniqueModelbasedMember srt:MinimumMember 2024-12-31 0000831001…
• FY2025 10-K: …us-gaap:OtherIncomeMember 2025-01-01 2025-12-31 0000831001 c:CommodityOptionAndOtherContractOptionsMember c:InterestIncomeExpenseNetMember 2025-01-01 2025-12-31 0000831001 c:CommodityOptionAndOtherContractOptionsMember us-gaap:OtherIncomeMember 2024-01-01 2024-12-31 0000831001…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.