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Western Alliance Bancorporation (NYSE:WAL)
EV/EBITDA
17.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Western Alliance Bancorporation's enterprise value is $2,571.4 Mil. Western Alliance Bancorporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $147.3 Mil. Therefore, Western Alliance Bancorporation's EV/EBITDA ratio for today is 17.12.

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 Bancorporation's stock price is $23.50. Western Alliance Bancorporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.31. Therefore, Western Alliance Bancorporation's P/E Ratio for today is 18.20.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2571.424/147.293
=17.46

Western Alliance Bancorporation's current Enterprise Value is $2,571.4 Mil.
Western Alliance Bancorporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 29.887 (Mar. 2013 ) + 43.278 (Jun. 2013 ) + 39.735 (Sep. 2013 ) + 34.393 (Dec. 2013 ) = $147.3 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=23.50/1.307
=17.98

Western Alliance Bancorporation's share price for today is $23.50.
Western Alliance Bancorporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.24 (Mar. 2013 ) + 0.39 (Jun. 2013 ) + 0.32 (Sep. 2013 ) + 0.357 (Dec. 2013 ) = $1.31.

* 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.

Western Alliance Bancorporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.0051.3318.6718.769.410.82180.1314.5910.1015.61

Western Alliance Bancorporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 10.5414.5913.2414.1814.0010.1010.6912.4311.9415.61
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