Switch to:
Wells Fargo & Co (NYSE:WFC)
EV/EBITDA
7.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wells Fargo & Co's enterprise value is $260,340 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $36,539 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 7.12.

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, Wells Fargo & Co's stock price is $53.81. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.08. Therefore, Wells Fargo & Co's P/E Ratio for today is 13.20.

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


Definition

Wells Fargo & Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=260340.073/36539
=7.12

Wells Fargo & Co's current Enterprise Value is $260,340 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 9002 (Dec. 2013 ) + 8923 (Mar. 2014 ) + 9387 (Jun. 2014 ) + 9227 (Sep. 2014 ) = $36,539 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.

Wells Fargo & Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=53.81/4.082
=13.18

Wells Fargo & Co's share price for today is $53.81.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.002 (Dec. 2013 ) + 1.05 (Mar. 2014 ) + 1.01 (Jun. 2014 ) + 1.02 (Sep. 2014 ) = $4.08.

* 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.

Wells Fargo & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 13.2312.3212.9918.2197.4217.5917.2412.1011.4111.98

Wells Fargo & Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 12.3812.0211.4111.7711.7012.0811.9812.4613.056.86
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