NYSE
WAL
Last Price
US $83.49
KEY FIGURES
MKT CAP
$8.9B
EPS
TTM
$8.85
PEG
TTM
0.52x
P/E
TTM
9.46x
P/S
TTM
1.70x
YIELD
2.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.88%
Return on equity
ROIC: 6.08%
Valuation History
9.5X
Price to Earnings
EV/EBITDA: 5.5X
Cash flow
Profit margin
31.65%
(FY vs FY)
EBITDA Y/Y
15.27%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $83.49
—
Default assumptions
EBITDA Multiple
Fair Value
Market $83.49
-39.37%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Western Alliance Bancorporation cash flow to debt ratio of -41.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Western Alliance Bancorporation's free cash flow has increased -1.15% from $-2.83G last year to $-2.79G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Western Alliance Bancorporation's debt to equity ratio is 0.90, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Western Alliance Bancorporation's debt has decreased relative to shareholder equity from 0.99 last year to 0.90 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Western Alliance Bancorporation has a net debt to EBITDA ratio of 2.15x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Western Alliance Bancorporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Western Alliance Bancorporation's profit margin has increased (10.48%) in the last year from 15.70% to 17.35%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Western Alliance Bancorporation's short-term liabilities of $81.01G exceed its short-term assets of $13.96G, signaling financial risk
Decreasing performance - ROA.
Western Alliance Bancorporation's return on assets of 0.97% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Western Alliance Bancorporation's return on equity of 12.88%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Western Alliance Bancorporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Western Alliance Bancorporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Western Alliance Bancorporation has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Western Alliance Bancorporation has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Western Alliance Bancorporation's yearly earnings has increased 23.02% since last year from $787.70M to $969.00M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Western Alliance Bancorporation's yearly revenue has increased 3.76% since last year from $5.08G to $5.28G, signaling increasing performance
Increasing performance - ROIC.
ROIC 6.08% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Western Alliance Bancorporation's 3-year revenue CAGR of 21.23% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Western Alliance Bancorporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Western Alliance Bancorporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Western Alliance Bancorporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Western Alliance Bancorporation has an earnings yield of 10.78%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Western Alliance Bancorporation is overvalued relative to its fair value price of 50.62 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Western Alliance Bancorporation has an EV/EBITDA ratio of 5.45x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Western Alliance Bancorporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Western Alliance Bancorporation has a price-to-book ratio of 1.17x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Western Alliance Bancorporation has a price-to-sales ratio of 1.62x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue