WAL Relative Valuation
WAL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WAL is overvalued; if below, it's undervalued.
Historical Valuation
Western Alliance Bancorp (WAL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.60 is considered Undervalued compared with the five-year average of 8.55. The fair price of Western Alliance Bancorp (WAL) is between 109.97 to 144.32 according to relative valuation methord. Compared to the current price of 87.31 USD , Western Alliance Bancorp is Undervalued By 20.6%.
Relative Value
Fair Zone
109.97-144.32
Current Price：87.31
20.6%
Undervalued
8.60
PE
1Y
3Y
5Y
0.00
EV/EBITDA
Western Alliance Bancorp. (WAL) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
NaN
EV/EBIT
Western Alliance Bancorp. (WAL) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.
2.50
PS
Western Alliance Bancorp. (WAL) has a current PS of 2.50. The 5-year average PS is 2.91. The thresholds are as follows: Strongly Undervalued below 0.73, Undervalued between 0.73 and 1.82, Fairly Valued between 3.99 and 1.82, Overvalued between 3.99 and 5.08, and Strongly Overvalued above 5.08. The current Forward PS of 2.50 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/OCF
Western Alliance Bancorp. (WAL) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.
0.00
P/FCF
Western Alliance Bancorp. (WAL) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
Western Alliance Bancorp (WAL) has a current Price-to-Book (P/B) ratio of 1.31. Compared to its 3-year average P/B ratio of 1.20 , the current P/B ratio is approximately 9.34% higher. Relative to its 5-year average P/B ratio of 1.60, the current P/B ratio is about -18.16% higher. Western Alliance Bancorp (WAL) has a Forward Free Cash Flow (FCF) yield of approximately -35.79%. Compared to its 3-year average FCF yield of -7.49%, the current FCF yield is approximately 377.59% lower. Relative to its 5-year average FCF yield of -7.10% , the current FCF yield is about 403.85% lower.
1.31
P/B
Median3y
1.20
Median5y
1.60
-35.79
FCF Yield
Median3y
-7.49
Median5y
-7.10
Competitors Valuation Multiple
The average P/S ratio for WAL's competitors is 3.10, providing a benchmark for relative valuation. Western Alliance Bancorp Corp (WAL) exhibits a P/S ratio of 2.50, which is -19.5% above the industry average. Given its robust revenue growth of 15.01%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WAL decreased by 0.64% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 697.60M to 802.30M.
The secondary factor is the Margin Expansion, contributed 13.37%to the performance.
Overall, the performance of WAL in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Western Alliance Bancorp (WAL) currently overvalued or undervalued?
Western Alliance Bancorp (WAL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.60 is considered Undervalued compared with the five-year average of 8.55. The fair price of Western Alliance Bancorp (WAL) is between 109.97 to 144.32 according to relative valuation methord. Compared to the current price of 87.31 USD , Western Alliance Bancorp is Undervalued By 20.60% .
What is Western Alliance Bancorp (WAL) fair value?
WAL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Western Alliance Bancorp (WAL) is between 109.97 to 144.32 according to relative valuation methord.
How does WAL's valuation metrics compare to the industry average?
The average P/S ratio for WAL's competitors is 3.10, providing a benchmark for relative valuation. Western Alliance Bancorp Corp (WAL) exhibits a P/S ratio of 2.50, which is -19.50% above the industry average. Given its robust revenue growth of 15.01%, this premium appears unsustainable.
What is the current P/B ratio for Western Alliance Bancorp (WAL) as of Jan 06 2026?
As of Jan 06 2026, Western Alliance Bancorp (WAL) has a P/B ratio of 1.31. This indicates that the market values WAL at 1.31 times its book value.
What is the current FCF Yield for Western Alliance Bancorp (WAL) as of Jan 06 2026?
As of Jan 06 2026, Western Alliance Bancorp (WAL) has a FCF Yield of -35.79%. This means that for every dollar of Western Alliance Bancorp’s market capitalization, the company generates -35.79 cents in free cash flow.
What is the current Forward P/E ratio for Western Alliance Bancorp (WAL) as of Jan 06 2026?
As of Jan 06 2026, Western Alliance Bancorp (WAL) has a Forward P/E ratio of 8.60. This means the market is willing to pay $8.60 for every dollar of Western Alliance Bancorp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Western Alliance Bancorp (WAL) as of Jan 06 2026?
As of Jan 06 2026, Western Alliance Bancorp (WAL) has a Forward P/S ratio of 2.50. This means the market is valuing WAL at $2.50 for every dollar of expected revenue over the next 12 months.