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GuruFocus has detected 3 Warning Signs with Wells Fargo & Co $WFC.
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Wells Fargo & Co (NYSE:WFC)
EV/EBITDA
17.01 (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 $632,833 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $37,204 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 17.01.

WFC' s EV/EBITDA Range Over the Past 10 Years
Min: 6.6   Max: 98.2
Current: 17.58

6.6
98.2

During the past 13 years, the highest EV/EBITDA Ratio of Wells Fargo & Co was 98.20. The lowest was 6.60. And the median was 14.80.

WFC's EV/EBITDA is ranked lower than
71% of the 1226 Companies
in the Global Banks - Global industry.

( Industry Median: 11.20 vs. WFC: 17.58 )

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 $55.07. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.03. Therefore, Wells Fargo & Co's P/E Ratio for today is 13.67.

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)
=632833.141/37204
=17.01

Wells Fargo & Co's current Enterprise Value is $632,833 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 9048 (Dec. 2015 ) + 9376 (Mar. 2016 ) + 9160 (Jun. 2016 ) + 9620 (Sep. 2016 ) = $37,204 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=55.07/4.03
=13.67

Wells Fargo & Co's share price for today is $55.07.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 1 (Dec. 2015 ) + 0.99 (Mar. 2016 ) + 1.01 (Jun. 2016 ) + 1.03 (Sep. 2016 ) = $4.03.

* 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.

Wells Fargo & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 18.0897.4217.5917.6612.1011.4112.3314.5915.6517.57

Wells Fargo & Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 6.8914.5913.1113.0514.7315.6515.6716.3616.3517.57
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