WAL Valuation

Western Alliance Bancorp

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87.130

+5.68(6.974%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 8.67 is considered Fairly compared with the five-year average of 8.58. The fair price of Western Alliance Bancorp (WAL) is between 78.34 to 113.01 according to relative valuation methord.

Relative Value

Fair Zone

78.34-113.01

Current Price：87.13

Fair

8.67

Trailing

Forward

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.

2.47

Western Alliance Bancorp. (WAL) has a current PS of 2.47. The 5-year average PS is 2.98. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 1.88, Fairly Valued between 4.09 and 1.88, Overvalued between 4.09 and 5.19, and Strongly Overvalued above 5.19. The current Forward PS of 2.47 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 1.30. Compared to its 3-year average P/B ratio of 1.23 , the current P/B ratio is approximately 5.98% higher. Relative to its 5-year average P/B ratio of 1.61, the current P/B ratio is about -19.02% higher. Western Alliance Bancorp (WAL) has a Forward Free Cash Flow (FCF) yield of approximately -42.15%. Compared to its 3-year average FCF yield of -0.49%, the current FCF yield is approximately 8531.47% lower. Relative to its 5-year average FCF yield of -3.23% , the current FCF yield is about 1204.87% lower.

1.30

P/B

Median3y

1.23

Median5y

1.61

-42.15

FCF Yield

Median3y

-0.49

Median5y

-3.23

Competitors Valuation Multiple

The average P/S ratio for WAL's competitors is 3.30, providing a benchmark for relative valuation. Western Alliance Bancorp Corp (WAL) exhibits a P/S ratio of 2.47, which is -25.22% above the industry average. Given its robust revenue growth of 8.71%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WAL.N

Western Alliance Bancorp

Commerce Bancshares Inc

Cullen/Frost Bankers Inc

Performance Decomposition

Market capitalization of WAL increased by 6.67% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 29.42 to 33.24.

The secondary factor is the Revenue Growth, contributed 8.71%to the performance.

Overall, the performance of WAL in the past 1 year is driven by Margin Expansion. Which is more sustainable.

8.71%

658.10M → 715.40M

Revenue Growth

12.98%

29.42 → 33.24

Margin Expansion

-15.02%

12.60 → 10.70

P/E Change

6.67%