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Wells Fargo & Co (NYSE:WFC)
EV/EBITDA
13.87 (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 $518,863 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $37,415 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 13.87.

WFC' s EV/EBITDA Range Over the Past 10 Years
Min: 6.6   Max: 98.2
Current: 13.86

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 13.40.

WFC's EV/EBITDA is ranked lower than
59% of the 1571 Companies
in the Global Banks - Global industry.

( Industry Median: 11.75 vs. WFC: 13.86 )

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 $50.55. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $4.08. Therefore, Wells Fargo & Co's P/E Ratio for today is 12.40.

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)
=518862.729/37415
=13.87

Wells Fargo & Co's current Enterprise Value is $518,863 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 9380 (Jun. 2015 ) + 9611 (Sep. 2015 ) + 9048 (Dec. 2015 ) + 9376 (Mar. 2016 ) = $37,415 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)
=50.55/4.075
=12.40

Wells Fargo & Co's share price for today is $50.55.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 1.03 (Jun. 2015 ) + 1.05 (Sep. 2015 ) + 1.005 (Dec. 2015 ) + 0.99 (Mar. 2016 ) = $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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 12.9918.0897.4217.5917.6612.1011.4112.3314.5915.65

Wells Fargo & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 12.3312.4613.006.8914.5913.1413.0514.7315.6513.57
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