With the Fed cutting its projected neutral overnight rate (i.e., median expectation for where rates might stand with the economy at full output) from 4.25% to 3.00% over the past four years, BAC and other financial institutions might at the same time cut their long-term median ROE projections. That the economy operates at full capacity at lower overnight rates is not positive news to institutions that rely heavily on a lending business model. If BAC’s ROE normalizes back to 8% long-term (5+ years out), I have the stock fairly valued at $10.50. At 12% long-term, BAC should be more accurately priced at $16.25.When considering near-term stagnation at around 6% ROE, and long-term ROE normalization at x%, this will produce the following projected per share valuations:Over the past thirteen years, BAC’s highest ROE has been 17.8% (2006). Due to the effects of the financial crisis and lingering recovery, median ROE over this period is just 1.6%.--Bank of America's (BAC) Return on Equity Issues Bank of America (BAC) Valuation Based on Various ROE LevelsBank of America (BAC) Price Projection Based on ROE Normalization (Current)Valuation of Bank of America (BAC)