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GuruFocus has detected 4 Warning Signs with Western Alliance Bancorp $WAL.
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Western Alliance Bancorp (NYSE:WAL)
EV-to-EBITDA
14.08 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Western Alliance Bancorp's enterprise value is $5,225.6 Mil. Western Alliance Bancorp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $371.1 Mil. Therefore, Western Alliance Bancorp's EV/EBITDA ratio for today is 14.08.

WAL' s EV-to-EBITDA Range Over the Past 10 Years
Min: -14.1   Max: 184.9
Current: 14.1

-14.1
184.9

During the past 13 years, the highest EV/EBITDA Ratio of Western Alliance Bancorp was 184.90. The lowest was -14.10. And the median was 12.30.

WAL's EV-to-EBITDA is ranked lower than
66% of the 1576 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 10.00 vs. WAL: 14.10 )

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, Western Alliance Bancorp's stock price is $48.06. Western Alliance Bancorp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.50. Therefore, Western Alliance Bancorp's P/E Ratio for today is 19.22.

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


Definition

Western Alliance Bancorp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5225.638/371.148
=14.08

Western Alliance Bancorp's current Enterprise Value is $5,225.6 Mil.
Western Alliance Bancorp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 83.457 (Mar. 2016 ) + 91.471 (Jun. 2016 ) + 99.359 (Sep. 2016 ) + 96.861 (Dec. 2016 ) = $371.1 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.

Western Alliance Bancorp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=48.06/2.5
=19.22

Western Alliance Bancorp's share price for today is $48.06.
Western Alliance Bancorp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.6 (Mar. 2016 ) + 0.6 (Jun. 2016 ) + 0.64 (Sep. 2016 ) + 0.66 (Dec. 2016 ) = $2.50.

* 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.

Western Alliance Bancorp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 23.27-3.84-0.83180.1314.479.7315.2213.8614.4514.23

Western Alliance Bancorp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 12.7913.8611.8014.0114.0514.459.009.4811.2514.23
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