At first glance, it looks compelling enough. Shares are priced at less than 10 times this year's projected earnings, and analysts expect about the same per-share profits next year. The dividend yield of 3% is pretty attractive as well. Better still, the big bank's bottom line improved to the tune of 19% year over year in the second quarter of this year, thanks to higher interest rates.

But before you plow into Bank of America (NYSE: BAC) based on its basic valuation measures, you might want to reconsider. As the old investing adage reminds us, some stocks are cheap for a reason.

If you already own a stake in BofA, don't panic. The nation's second-biggest bank (as measured by assets) is hardly doomed.

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Source Fool.com