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Bank of America Corporation (NYSE:BAC)
EV/EBITDA
20.45 (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 $302,291 Mil. Bank of America Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $14,779 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 20.45.

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 $17.03. Bank of America Corporation's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $0.68. Therefore, Bank of America Corporation's P/E Ratio for today is 25.08.

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)
=302290.781/14779
=20.45

Bank of America Corporation's current Enterprise Value is $302,291 Mil.
Bank of America Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 3421 (Jun. 2014 ) + 1056 (Sep. 2014 ) + 4952 (Dec. 2014 ) + 5350 (Mar. 2015 ) = $14,779 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)
=17.03/0.679
=25.08

Bank of America Corporation's share price for today is $17.03.
Bank of America Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.19 (Jun. 2014 ) + -0.04 (Sep. 2014 ) + 0.259 (Dec. 2014 ) + 0.27 (Mar. 2015 ) = $0.68.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 15.0514.1422.4663.5461.10202.64104.1052.5017.5635.80

Bank of America Corporation Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 52.5049.3036.6524.3717.5620.8423.7638.5235.8019.31
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