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Bank of America Corporation (NYSE:BAC)
EV/EBITDA
39.30 (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 $351,032 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $8,932 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 39.30.

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 $17.71. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.38. Therefore, Bank of America Corporation's P/E Ratio for today is 46.73.

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)
=351031.500/8932
=39.30

Bank of America Corporation's current Enterprise Value is $351,032 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 4507 (Dec. 2013 ) + -52 (Mar. 2014 ) + 3421 (Jun. 2014 ) + 1056 (Sep. 2014 ) = $8,932 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)
=17.71/0.379
=46.73

Bank of America Corporation's share price for today is $17.71.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.279 (Dec. 2013 ) + -0.05 (Mar. 2014 ) + 0.19 (Jun. 2014 ) + -0.04 (Sep. 2014 ) = $0.38.

* 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 15.0115.0514.1422.4664.7855.64212.85104.1052.5017.56

Bank of America Corporation Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 17.7529.6952.5049.3036.6524.3717.5620.8423.7338.48
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