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GuruFocus has detected 3 Warning Signs with Bank of America Corporation $BAC.
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Bank of America Corporation (NYSE:BAC)
EV/EBITDA
14.78 (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 $355,482 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 14.78.

BAC' s EV/EBITDA Range Over the Past 10 Years
Min: 10.5   Max: 37.2
Current: 14.39

10.5
37.2

During the past 13 years, the highest EV/EBITDA Ratio of Bank of America Corporation was 37.20. The lowest was 10.50. And the median was 12.70.

BAC's EV/EBITDA is ranked lower than
60% of the 1295 Companies
in the Global Banks - Global industry.

( Industry Median: 11.35 vs. BAC: 14.39 )

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 $24.58. 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 19.51.

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)
=355481.539/24054
=14.78

Bank of America Corporation's current Enterprise Value is $355,482 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)
=24.58/1.26
=19.51

Bank of America Corporation's share price for today is $24.58.
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 21.9663.5461.10202.64104.1052.5017.5636.2712.1514.08

Bank of America Corporation Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 0.0036.2721.2316.0311.7712.1510.1310.3810.7214.08
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