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Wells Fargo & Co (NYSE:WFC)
EV/EBITDA
12.92 (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 $470,608 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $36,430 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 12.92.

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 $53.98. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $4.10. Therefore, Wells Fargo & Co's P/E Ratio for today is 13.17.

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)
=470607.917/36430
=12.92

Wells Fargo & Co's current Enterprise Value is $470,608 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 8923 (Mar. 2014 ) + 9387 (Jun. 2014 ) + 9227 (Sep. 2014 ) + 8893 (Dec. 2014 ) = $36,430 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)
=53.98/4.099
=13.17

Wells Fargo & Co's share price for today is $53.98.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.05 (Mar. 2014 ) + 1.01 (Jun. 2014 ) + 1.02 (Sep. 2014 ) + 1.019 (Dec. 2014 ) = $4.10.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.3212.9918.2197.4217.5917.2412.1011.4111.9813.09

Wells Fargo & Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 12.0211.4111.7711.7012.0811.9812.4613.006.8913.09
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