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Western Alliance Bancorp (NYSE:WAL)
EV/EBITDA
14.46 (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 $2,921.8 Mil. Western Alliance Bancorp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $202.1 Mil. Therefore, Western Alliance Bancorp's EV/EBITDA ratio for today is 14.46.

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 $29.07. Western Alliance Bancorp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $1.67. Therefore, Western Alliance Bancorp's P/E Ratio for today is 17.45.

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)
=2921.775/202.108
=14.46

Western Alliance Bancorp's current Enterprise Value is $2,921.8 Mil.
Western Alliance Bancorp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 44.407 (Mar. 2014 ) + 47.924 (Jun. 2014 ) + 54.976 (Sep. 2014 ) + 54.801 (Dec. 2014 ) = $202.1 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)
=29.07/1.666
=17.45

Western Alliance Bancorp's share price for today is $29.07.
Western Alliance Bancorp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.35 (Mar. 2014 ) + 0.4 (Jun. 2014 ) + 0.46 (Sep. 2014 ) + 0.456 (Dec. 2014 ) = $1.67.

* 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.

Western Alliance Bancorp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 69.99-12.8423.27-3.92-0.83180.1314.4710.0415.2213.78

Western Alliance Bancorp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 14.0010.0410.5512.3211.7715.2214.1313.1512.7913.78
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