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Valley National Bancorp (NYSE:VLY)
EV/EBITDA
25.13 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Valley National Bancorp's enterprise value is $5,252.4 Mil. Valley National Bancorp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $206.9 Mil. Therefore, Valley National Bancorp's EV/EBITDA ratio for today is 25.13.

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, Valley National Bancorp's stock price is $10.65. Valley National Bancorp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $0.67. Therefore, Valley National Bancorp's P/E Ratio for today is 15.90.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Valley National Bancorp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5252.424/206.91
=25.39

Valley National Bancorp's current Enterprise Value is $5,252.4 Mil.
Valley National Bancorp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 50.676 (Mar. 2013 ) + 51.747 (Jun. 2013 ) + 41.281 (Sep. 2013 ) + 63.206 (Dec. 2013 ) = $206.9 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.

Valley National Bancorp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=10.65/0.668
=15.94

Valley National Bancorp's share price for today is $10.65.
Valley National Bancorp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.16 (Mar. 2013 ) + 0.17 (Jun. 2013 ) + 0.14 (Sep. 2013 ) + 0.198 (Dec. 2013 ) = $0.67.

* 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.

Valley National Bancorp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 32.7119.9831.3424.7147.2625.5325.2121.9616.9123.06

Valley National Bancorp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 18.8821.9624.7324.9221.0316.9117.6018.2123.6023.06
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