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Western Alliance Bancorporation (NYSE:WAL)
EV/EBIT
18.28 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Western Alliance Bancorporation's enterprise value is $2,571.4 Mil. Western Alliance Bancorporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $140.6 Mil. Therefore, Western Alliance Bancorporation's EV/EBIT ratio for today is 18.28.

WAL' s 10-Year EV/EBIT Range
Min: 10.3   Max: 75.6
Current: 18.28

10.3
75.6

During the past 13 years, the highest EV/EBIT Ratio of Western Alliance Bancorporation was 75.60. The lowest was 10.30. And the median was 18.70.

WAL's EV/EBITis ranked higher than
55% of the 1410 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 15.82 vs. WAL: 18.28 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Western Alliance Bancorporation's enterprise value for the quarter that ended in Dec. 2013 was $2,299.0 Mil. Western Alliance Bancorporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $140.6 Mil. Western Alliance Bancorporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.12%.


Definition

Western Alliance Bancorporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=2571.424/140.638
=18.28

Western Alliance Bancorporation's current Enterprise Value is $2,571.4 Mil.
Western Alliance Bancorporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 27.734 (Mar. 2013 ) + 41.002 (Jun. 2013 ) + 37.509 (Sep. 2013 ) + 34.393 (Dec. 2013 ) = $140.6 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Western Alliance Bancorporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=140.638/2299.032
=6.12 %

Western Alliance Bancorporation's Enterprise Value for the quarter that ended in Dec. 2013 was $2,299.0 Mil.
Western Alliance Bancorporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 27.734 (Mar. 2013 ) + 41.002 (Jun. 2013 ) + 37.509 (Sep. 2013 ) + 34.393 (Dec. 2013 ) = $140.6 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Western Alliance Bancorporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.0015.6915.7223.270.000.000.0017.6710.8516.35

Western Alliance Bancorporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 15.2117.6715.8416.3716.0410.8511.3013.0712.4816.35
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