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GuruFocus has detected 4 Warning Signs with Wells Fargo & Co $WFC.
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Wells Fargo & Co (NYSE:WFC)
EV-to-EBITDA
17.04 (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 $623,039 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $36,556 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 17.04.

WFC' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.6   Max: 99.4
Current: 17.05

6.6
99.4

During the past 13 years, the highest EV/EBITDA Ratio of Wells Fargo & Co was 99.40. The lowest was 6.60. And the median was 15.00.

WFC's EV-to-EBITDA is ranked higher than
55% of the 1685 Companies
in the Global Banks - Global industry.

( Industry Median: 11.29 vs. WFC: 17.05 )

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 $53.01. Wells Fargo & Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $4.00. Therefore, Wells Fargo & Co's P/E Ratio for today is 13.25.

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)
=623038.840/36556
=17.04

Wells Fargo & Co's current Enterprise Value is $623,039 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 9160 (Jun. 2016 ) + 9620 (Sep. 2016 ) + 8934 (Dec. 2016 ) + 8842 (Mar. 2017 ) = $36,556 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)
=53.01/4
=13.25

Wells Fargo & Co's share price for today is $53.01.
Wells Fargo & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.01 (Jun. 2016 ) + 1.03 (Sep. 2016 ) + 0.96 (Dec. 2016 ) + 1 (Mar. 2017 ) = $4.00.

* 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 18.0897.4217.5917.6612.1011.4112.3314.5915.6517.07

Wells Fargo & Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 14.5913.1113.0514.7315.6515.6716.3616.3517.0717.42
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