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Wells Fargo & Co (NYSE:WFC)
EV/EBITDA
13.20 (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 $480,610 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $35,922 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 13.20.

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 $48.93. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.89. Therefore, Wells Fargo & Co's P/E Ratio for today is 12.50.

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)
=480609.976/35922
=13.38

Wells Fargo & Co's current Enterprise Value is $480,610 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 8474 (Mar. 2013 ) + 9280 (Jun. 2013 ) + 9166 (Sep. 2013 ) + 9002 (Dec. 2013 ) = $35,922 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)
=48.93/3.892
=12.57

Wells Fargo & Co's share price for today is $48.93.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.92 (Mar. 2013 ) + 0.98 (Jun. 2013 ) + 0.99 (Sep. 2013 ) + 1.002 (Dec. 2013 ) = $3.89.

* 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 13.2312.3212.9918.2197.4217.5917.6612.1011.4112.34

Wells Fargo & Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 12.4012.1013.1212.3812.0211.4111.7711.7012.1212.34
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