Latest Ratios: P/E Ratio 8.7x · EV/EBITDA 8.3x · ROE 13.2%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.3B | $9.2B | $9.1B | $7.1B | $6.4B | $11.1B | $6.0B | $5.9B | $4.2B | $5.9B | $5.1B |
| Enterprise Value | $11.1B | $12.1B | $11.7B | $13.9B | $12.7B | $13.1B | $4.0B | $5.9B | $4.5B | $6.3B | $5.3B |
| P/E Ratio → | 8.66 | 9.63 | 11.78 | 10.06 | 6.14 | 12.42 | 11.89 | 11.78 | 9.54 | 18.26 | 19.48 |
| P/S Ratio | 2.39 | 2.67 | 2.95 | 2.79 | 2.58 | 5.88 | 4.86 | 5.34 | 4.38 | 7.23 | 7.27 |
| P/B Ratio | 1.04 | 1.16 | 1.36 | 1.17 | 1.20 | 2.24 | 1.77 | 1.95 | 1.59 | 2.67 | 2.67 |
| P/FCF | — | — | — | — | 3.05 | — | 9.36 | 8.61 | 7.72 | 15.86 | 18.73 |
| P/OCF | — | — | — | — | 2.85 | — | 8.99 | 8.19 | 7.69 | 15.49 | 18.02 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.51 | 3.77 | 5.41 | 5.13 | 6.95 | 3.23 | 5.38 | 4.78 | 7.69 | 7.57 |
| EV / EBITDA | 8.33 | 9.04 | 10.51 | 13.59 | 9.16 | 11.21 | 6.09 | 9.37 | 8.65 | 13.59 | 14.09 |
| EV / EBIT | 9.22 | 10.01 | 11.77 | 14.85 | 9.68 | 11.71 | 6.43 | 9.82 | 8.89 | 13.99 | 14.57 |
| EV / FCF | — | — | — | — | 6.06 | — | 6.22 | 8.69 | 8.42 | 16.86 | 19.49 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.1% | 61.1% | 58.8% | 58.7% | 81.6% | 95.9% | 83.6% | 84.1% | 86.6% | 91.2% | 93.1% |
| Operating Margin | 22.9% | 22.9% | 19.8% | 21.9% | 44.4% | 56.1% | 46.7% | 47.0% | 47.8% | 51.2% | 48.9% |
| Net Profit Margin | 18.4% | 18.4% | 15.7% | 17.0% | 35.7% | 44.9% | 38.0% | 38.8% | 40.8% | 36.9% | 35.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.2% | 13.2% | 12.3% | 12.6% | 20.5% | 21.5% | 15.8% | 17.7% | 18.0% | 15.8% | 14.9% |
| ROA | 1.1% | 1.1% | 1.0% | 1.0% | 1.7% | 1.9% | 1.6% | 2.0% | 2.0% | 1.7% | 1.7% |
| ROIC | 6.5% | 6.5% | 5.4% | 5.2% | 9.8% | 14.6% | 12.3% | 13.0% | 11.8% | 12.5% | 12.4% |
| ROCE | 10.4% | 10.4% | 9.8% | 10.5% | 15.7% | 18.5% | 14.6% | 16.3% | 16.0% | 16.5% | 15.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.82 | 0.82 | 0.99 | 1.37 | 1.38 | 0.51 | 0.19 | 0.16 | 0.33 | 0.36 | 0.26 |
| Debt / EBITDA | 4.84 | 4.84 | 5.98 | 8.14 | 5.30 | 2.17 | 0.99 | 0.77 | 1.67 | 1.70 | 1.31 |
| Net Debt / Equity | — | 0.36 | 0.38 | 1.11 | 1.18 | 0.41 | -0.59 | 0.02 | 0.14 | 0.17 | 0.11 |
| Net Debt / EBITDA | 2.15 | 2.15 | 2.28 | 6.60 | 4.55 | 1.73 | -3.08 | 0.08 | 0.72 | 0.81 | 0.55 |
| Debt / FCF | — | — | — | — | 3.01 | — | -3.14 | 0.08 | 0.70 | 1.00 | 0.76 |
| Interest Coverage | 0.66 | 0.66 | 0.52 | 0.55 | 2.77 | 10.22 | 6.56 | 3.27 | 4.34 | 7.43 | 8.34 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.17 | 0.17 | 0.12 | 0.21 | 0.14 | 0.14 | 0.23 | 0.17 | 0.19 | 0.23 | 0.20 |
| Quick Ratio | 0.17 | 0.17 | 0.12 | 0.21 | 0.14 | 0.14 | 0.23 | 0.17 | 0.19 | 0.23 | 0.20 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.03 | 0.02 | 0.01 | 0.08 | 0.02 | 0.03 | 0.02 | 0.02 |
| Asset Turnover | — | 0.06 | 0.06 | 0.06 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.0% | 1.9% | 2.4% | 2.6% | 1.1% | 1.7% | 0.9% | — | — | — |
| Payout Ratio | 19.1% | 19.1% | 22.4% | 23.7% | 15.7% | 14.2% | 20.0% | 10.3% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.5% | 10.4% | 8.5% | 9.9% | 16.3% | 8.1% | 8.4% | 8.5% | 10.5% | 5.5% | 5.1% |
| FCF Yield | — | — | — | — | 32.8% | — | 10.7% | 11.6% | 13.0% | 6.3% | 5.3% |
| Buyback Yield | 0.8% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | 1.2% | 2.0% | 0.9% | 0.2% | 0.0% |
| Total Shareholder Yield | 3.1% | 2.8% | 1.9% | 2.4% | 2.6% | 1.1% | 2.9% | 2.9% | 0.9% | 0.2% | 0.0% |
| Shares Outstanding | — | $110M | $109M | $109M | $108M | $103M | $101M | $103M | $105M | $105M | $104M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying WAL stock.
Western Alliance Bancorporation's current P/E ratio is 8.7x. The historical average is 15.9x. This places it at the 6th percentile of its historical range.
Western Alliance Bancorporation's current EV/EBITDA is 8.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.7x.
Western Alliance Bancorporation's return on equity (ROE) is 13.2%. The historical average is 8.3%.
Based on historical data, Western Alliance Bancorporation is trading at a P/E of 8.7x. This is at the 6th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Western Alliance Bancorporation's current dividend yield is 2.23% with a payout ratio of 19.1%.
Western Alliance Bancorporation has 61.1% gross margin and 22.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Western Alliance Bancorporation's Debt/EBITDA ratio is 4.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
CRE and ABL credit exposure
Metrics are mathematically derived from official filings.
Discount Reflecting Credit and Liquidity Fears
WAL trades at 1.09x book and 9.07x trailing earnings, a steep discount to EWBC's 2.03x P/B, as reported in peer data, suggesting the market prices in elevated credit risk and a less durable franchise.
The P/B multiple implies the market expects returns on tangible equity well below the peer average, given WAL's ROE of 3.3% versus EWBC's 16.2%. The discount may reflect lingering concerns about the 2023 liquidity stress and current CRE exposure, but it also suggests that if credit normalizes, the re-rating potential is significant. The forward P/E of 8.70 indicates the market is not pricing in sustained earnings growth, which could be conservative if the deposit franchise proves sticky.
ROE Depressed by Thin NIM and Fee Volatility
ROE of 3.3% in 2026Q2, as per reported quarterly data, is far below peers, driven by a 0.8% NIM and a negative fee income ratio of -38.6%, indicating that core profitability is being masked by non-interest swings.
DuPont decomposition shows that the bank's return on assets of 0.3% is the primary drag, with leverage (equity/assets of 8%) amplifying the modest ROA. The negative fee income in 2026Q2, likely from MSR fair value adjustments, distorts the fee contribution, but even excluding that, the NIM of 0.8% is exceptionally thin, suggesting that funding costs are consuming most of the asset yield. This implies that the bank's profitability is highly sensitive to deposit pricing and that the current ROE may not be sustainable without margin expansion.
NIM Stuck at 0.8% Despite Loan Growth
Net interest margin has held at 0.8% for five consecutive quarters through 2026Q2, as reported in financial statements, indicating that asset yields and funding costs are moving in lockstep, with no relief from loan growth.
The stability of NIM suggests that the bank is passing on higher rates to depositors, consistent with the shift toward insured deposits. The efficiency ratio, excluding the anomalous 4.6% in 2026Q2, has been stable around 38-40%, indicating that cost control is not the issue. However, the lack of NIM expansion despite a 14.2% increase in NII implies that the bank is funding growth with increasingly expensive deposits, which could compress margins further if the deposit optimization strategy does not yield results.
Capital Ratios Flat, Retention Supports Growth
Equity-to-assets remained at 8% through 2026Q2, as per reported figures, with equity growing from $6.2B in 2024Q1 to $7.8B, indicating that retained earnings are funding expansion but leaving little buffer for stress.
The flat equity ratio suggests that the bank is not building capital faster than asset growth, which may limit its ability to absorb credit losses without diluting shareholders. The conservative capital return policy, with dividends stable and buybacks minimal, indicates that management is prioritizing retention, but the lack of a CET1 ratio in the data makes it difficult to assess regulatory headroom. Investors should monitor whether the bank can maintain this growth pace without raising capital, especially given the provision spike in 2026Q1.
Provision Spike Signals CRE and ABL Stress
Provision for loan losses surged to $213.2M in 2026Q1, a 167% increase from the prior quarter, as reported in quarterly data, before moderating to $80.4M in 2026Q2, indicating that credit costs are rising in CRE and ABL portfolios.
The elevated provisions suggest that the bank is building reserves in anticipation of losses, but the moderation in 2026Q2 may indicate that the worst is over or that the bank is being opportunistic. The lack of NPL or charge-off data makes it difficult to assess the adequacy of reserves, but the concentration in CRE and ABL, as highlighted in recent context, warrants close monitoring. If the office sector continues to deteriorate, provisions could rise again, pressuring earnings and capital.
P/E Misleading Due to Provision Volatility
The trailing P/E of 9.07, as reported in valuation metrics, is distorted by the $213.2M provision spike in 2026Q1, which depressed earnings, making the multiple appear cheaper than the underlying profitability suggests.
For banks, P/E can be misleading because provisions are volatile and can swing earnings significantly from quarter to quarter. A better metric is P/TBV or P/B, which is less sensitive to short-term earnings swings. WAL's P/B of 1.09 is more informative, as it reflects the market's view of the balance sheet's intrinsic value. Investors should also adjust for MSR fair value swings to isolate core earnings, as the negative fee income in 2026Q2 obscures the true profitability of the franchise.