Switch to:
Bank of America Corporation (NYSE:BAC)
EV/EBITDA
12.49 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Bank of America Corporation's enterprise value is $251,592 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $20,136 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 12.49.

BAC' s EV/EBITDA Range Over the Past 10 Years
Min: -167.4   Max: 649.1
Current: 10.05

-167.4
649.1

During the past 13 years, the highest EV/EBITDA Ratio of Bank of America Corporation was 649.10. The lowest was -167.40. And the median was 25.35.

BAC's EV/EBITDA is ranked higher than
58% of the 2139 Companies
in the Global Banks - Global industry.

( Industry Median: 11.06 vs. BAC: 10.05 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Bank of America Corporation's stock price is $12.95. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $1.35. Therefore, Bank of America Corporation's P/E Ratio for today is 9.60.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Bank of America Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=251592.391/20136
=12.49

Bank of America Corporation's current Enterprise Value is $251,592 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 0 (Dec. 2014 ) + 5350 (Mar. 2015 ) + 8122 (Jun. 2015 ) + 6664 (Sep. 2015 ) = $20,136 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Bank of America Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=12.95/1.349
=9.60

Bank of America Corporation's share price for today is $12.95.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 0.259 (Dec. 2014 ) + 0.27 (Mar. 2015 ) + 0.45 (Jun. 2015 ) + 0.37 (Sep. 2015 ) = $1.35.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

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

Bank of America Corporation Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 14.1422.4664.7861.10202.64104.1052.5017.5635.800.00

Bank of America Corporation Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda 24.3717.5620.8423.7638.5235.8019.3116.0311.150.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK