Jim Cramer: Bank of America’s Valuation Is an 'Insult' to CEO Brian Moynihan

Jim Cramer, host of CNBC’s 'Mad Money,' has voiced strong skepticism over Bank of America’s (BAC) current valuation, declaring the stock’s price-to-book ratio an 'insult' to CEO Brian Moynihan. Cramer argued that despite the bank’s consistent earnings growth and strong capital position, BAC trades at a multiple significantly below its historical average and peers in the financial sector. As of early 2026, BAC’s price-to-book ratio stood at 1.15, well below the 1.50–1.80 range typically seen in large U.S. banks with similar asset quality and profitability. The critique underscores concerns about market perception of BAC’s ability to generate sustained returns on equity. With a return on equity of 14.3% in the fourth quarter of 2025 and a net interest income of $28.4 billion—up 6% year-over-year—Cramer questioned why investors continue to undervalue the franchise. He highlighted that Moynihan, who has led the bank since 2010, has delivered consistent financial results while navigating macroeconomic volatility, including rising interest rates and regulatory scrutiny. Market reaction has been mixed. While BAC shares have slightly outperformed the S&P 500 over the past 12 months, the stock remains under pressure from broader banking sector sentiment. Analysts have begun to reassess their ratings, with three major firms upgrading BAC to 'Overweight' in the last two weeks. This shift coincides with a $3.2 billion share buyback announcement in December 2025, signaling management’s confidence in intrinsic value. The commentary may prompt renewed institutional interest, particularly from value-focused funds. Given BAC’s $355 billion in total assets and top-tier credit ratings, Cramer’s remarks serve as a catalyst for re-examining fundamentals beyond sentiment. The stock’s low multiple could reflect concerns over future loan loss provisions, though current provisions remain below the 10-year average.