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Bank of America Corporation (NYSE:BAC)
EV/EBITDA
25.44 (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 $481,180 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $18,855 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 25.44.

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 $16.29. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $0.90. Therefore, Bank of America Corporation's P/E Ratio for today is 17.90.

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)
=481179.924/18855
=25.52

Bank of America Corporation's current Enterprise Value is $481,180 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 2671 (Mar. 2013 ) + 6174 (Jun. 2013 ) + 5503 (Sep. 2013 ) + 4507 (Dec. 2013 ) = $18,855 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)
=16.29/0.899
=18.12

Bank of America Corporation's share price for today is $16.29.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.1 (Mar. 2013 ) + 0.32 (Jun. 2013 ) + 0.2 (Sep. 2013 ) + 0.279 (Dec. 2013 ) = $0.90.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 15.0115.0514.1422.4664.7845.92212.85104.1052.5017.62

Bank of America Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 4.84104.10355.6317.7529.6952.5049.3036.6524.3717.62
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