The “Brexit” vote was not a positive piece of news for most financial institutions. Bank of America (BAC) has a notable presence in the UK, and its influence may wane if London’s status as the financial capital of Europe takes a hit. The stock fell 7% during Friday’s trading. The US Federal Reserve seems likely to table interest rate hikes for the remainder of the year, primarily due to the uncertainty and instability Brexit brings to the world economy as well due to the appreciation in the USD. A stronger USD against major currencies such as the GBP and Euro makes its exports make expensive relative to other countries and may have up to a 0.4% affect on GDP growth after one year if current exchange rates represent a new norm. Banks are a beneficiary of rate hikes, as they can pass off this increasing cost of borrowing to consumers and businesses to lend at higher rates and (ideally) fatten their bottom lines. Despite the fall in BAC’s share price, I still don’t see the company as especially cheap. I project BAC’s net income at approximately $15.2 billion for the FY2016. Its book value of equity, as of the close of Q1 2016 stands at $262.8 billion. This provides a return on equity of just 5.8%. This stagnation in ROE is the primary culprit for why BAC trades at just 0.61x book value. Hypothetically, starting today, from this point forward BAC would need to earn an ROE of slightly above 12% to trade at book value (~$23.50 per share), yet it currently trades at under half that amount.--Bank of America (BAC) Valuation Based on Various ROE LevelsBank of America (BAC) Price Projection Based on ROE NormalizationValuation of Bank of America (BAC)