what is Pick-and-Shovel Investing

**Conclusion**: Bank of China's true price is estimated to be higher than its current market value, indicating a potential undervaluation. This conclusion is based on the analysis of valuation models, financial ratios, industry benchmarks, and competitors. **Analysis**: 1. **Valuation Models**: The use of discounted cash flow, peer valuation multiples, and dividend discount models suggests that Bank of China's true price is likely higher than its current market price. 2. **Financial Position**: An assessment of the bank's financial position by analyzing market value, financial ratios, industry benchmarks, and competitors supports the idea that the bank may be undervalued. 3. **Market Performance**: The mixed performance of Asian stocks, with Chinese shares extending their stellar performance, indicates a positive trend that could impact Bank of China's stock value positively. 4. **Central Bank's Intervention**: China's central bank injecting $69.7 billion via reverse repos is a significant move that could stabilize the market and potentially boost Bank of China's stock value. 5. **Fed's Influence**: The Fed's actions and hopes lifting stocks could also have a positive effect on Bank of China's stock performance, although this is more indirectly related to the bank's specific circumstances. These points, taken together, provide a strong basis for concluding that Bank of China's true price is likely higher than its current market value, with several factors pointing to a potential undervaluation.