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GuruFocus has detected 4 Warning Signs with Bank of America Corporation $BAC.
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Bank of America Corporation (NYSE:BAC)
EV-to-EBITDA
13.40 (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 $338,062 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $25,228 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 13.40.

BAC' s EV-to-EBITDA Range Over the Past 10 Years
Min: -160.5   Max: 621.5
Current: 13.4

-160.5
621.5

During the past 13 years, the highest EV/EBITDA Ratio of Bank of America Corporation was 621.50. The lowest was -160.50. And the median was 25.25.

BAC's EV-to-EBITDA is ranked lower than
59% of the 1219 Companies
in the Global Banks - Global industry.

( Industry Median: 11.36 vs. BAC: 13.40 )

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 $22.94. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $1.38. Therefore, Bank of America Corporation's P/E Ratio for today is 16.62.

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)
=338061.968/25228
=13.40

Bank of America Corporation's current Enterprise Value is $338,062 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 4265 (Mar. 2016 ) + 6491 (Jun. 2016 ) + 7868 (Sep. 2016 ) + 6604 (Dec. 2016 ) = $25,228 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=22.94/1.38
=16.62

Bank of America Corporation's share price for today is $22.94.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.21 (Mar. 2016 ) + 0.36 (Jun. 2016 ) + 0.41 (Sep. 2016 ) + 0.4 (Dec. 2016 ) = $1.38.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Bank of America Corporation Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 21.9663.5487.66202.64104.1052.5017.5632.0111.7813.10

Bank of America Corporation Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 38.5232.0118.4515.7210.9011.789.9410.6311.8013.10
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