Switch to:
GuruFocus has detected 4 Warning Signs with Bank of America Corporation $BAC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Bank of America Corporation (NYSE:BAC)
EV/EBITDA
13.93 (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 $335,175 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $24,054 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 13.93.

BAC' s EV/EBITDA Range Over the Past 10 Years
Min: -160.5   Max: 621.5
Current: 13.46

-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 25.40.

BAC's EV/EBITDA is ranked lower than
59% of the 1226 Companies
in the Global Banks - Global industry.

( Industry Median: 11.20 vs. BAC: 13.46 )

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 $22.56. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $1.26. 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)
=335175.240/24054
=13.93

Bank of America Corporation's current Enterprise Value is $335,175 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 5430 (Dec. 2015 ) + 4265 (Mar. 2016 ) + 6491 (Jun. 2016 ) + 7868 (Sep. 2016 ) = $24,054 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)
=22.56/1.26
=17.90

Bank of America Corporation's share price for today is $22.56.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.28 (Dec. 2015 ) + 0.21 (Mar. 2016 ) + 0.36 (Jun. 2016 ) + 0.41 (Sep. 2016 ) = $1.26.

* 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 21.9663.5487.66202.64104.1052.5017.5635.8011.7813.30

Bank of America Corporation Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 38.5235.8019.8716.6511.3911.789.9410.6311.8013.30
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)
FEEDBACK