Pages

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.

No comments:

Post a Comment

For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.