Monday, September 12, 2011

BAC vs. WFC Twice the Book Value, Half the Market Value (almost)

Quick snapshot

BAC Book Value: $222B
WFC Book Value: $137B

BAC Market Cap: $70B
WFC Market Cap: $124B

BAC P/B: 0.31x
WFC P/B: 1.1x

Considering that the two companies are effectively oligopolists in the same market, the divergence is pretty striking.  Obviously the market thinks BAC is going to lose a lot of money and a lot of market share over time.

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