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GuruFocus has detected 1 Warning Sign with Western Alliance Bancorp $WAL.
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Western Alliance Bancorp (NYSE:WAL)
EV-to-EBITDA
11.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Western Alliance Bancorp's enterprise value is $4,570.5 Mil. Western Alliance Bancorp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $388.7 Mil. Therefore, Western Alliance Bancorp's EV/EBITDA ratio for today is 11.76.

WAL' s EV-to-EBITDA Range Over the Past 10 Years
Min: -14.1   Max: 197.9
Current: 11.72

-14.1
197.9

During the past 13 years, the highest EV/EBITDA Ratio of Western Alliance Bancorp was 197.90. The lowest was -14.10. And the median was 12.20.

WAL's EV-to-EBITDA is ranked lower than
61% of the 1685 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 11.29 vs. WAL: 11.72 )

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, Western Alliance Bancorp's stock price is $46.01. Western Alliance Bancorp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $2.60. Therefore, Western Alliance Bancorp's P/E Ratio for today is 17.70.

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


Definition

Western Alliance Bancorp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4570.536/388.748
=11.76

Western Alliance Bancorp's current Enterprise Value is $4,570.5 Mil.
Western Alliance Bancorp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 91.471 (Jun. 2016 ) + 99.359 (Sep. 2016 ) + 96.861 (Dec. 2016 ) + 101.057 (Mar. 2017 ) = $388.7 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.

Western Alliance Bancorp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.01/2.6
=17.70

Western Alliance Bancorp's share price for today is $46.01.
Western Alliance Bancorp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.6 (Jun. 2016 ) + 0.64 (Sep. 2016 ) + 0.66 (Dec. 2016 ) + 0.7 (Mar. 2017 ) = $2.60.

* 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.

Western Alliance Bancorp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 23.27-3.84-0.83180.1314.479.7315.2213.8614.4514.23

Western Alliance Bancorp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 13.8611.8014.0114.0514.459.009.4811.2514.2312.59
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