Switch to:
Western Alliance Bancorp (NYSE:WAL)
EV/EBITDA
15.02 (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 $2,689.1 Mil. Western Alliance Bancorp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $179.0 Mil. Therefore, Western Alliance Bancorp's EV/EBITDA ratio for today is 15.02.

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 $27.64. Western Alliance Bancorp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.56. Therefore, Western Alliance Bancorp's P/E Ratio for today is 17.70.

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)
=2689.054/178.993
=15.02

Western Alliance Bancorp's current Enterprise Value is $2,689.1 Mil.
Western Alliance Bancorp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 31.686 (Dec. 2013 ) + 44.407 (Mar. 2014 ) + 47.924 (Jun. 2014 ) + 54.976 (Sep. 2014 ) = $179.0 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 Bancorp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=27.64/1.562
=17.70

Western Alliance Bancorp's share price for today is $27.64.
Western Alliance Bancorp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.352 (Dec. 2013 ) + 0.35 (Mar. 2014 ) + 0.4 (Jun. 2014 ) + 0.46 (Sep. 2014 ) = $1.56.

* 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 Bancorp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.0069.99-12.8423.27-3.92-0.83180.1314.4710.0415.74

Western Alliance Bancorp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 14.1814.0010.0410.5512.3211.7715.7414.5813.6313.22
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK