Western Alliance Bancorporation (WAL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-24.7%

$59.90

vs $79.57 price

Levered DCF

-$128.40

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

-0.47

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.56×	11.7×	10.04×	6.11×	12.35×	11.85×	11.73×	9.49×
P/B	1.2×	1.35×	1.17×	1.19×	2.23×	1.76×	1.94×	1.59×
P/S	1.73×	1.81×	1.67×	2.16×	5.52×	4.5×	4.55×	3.89×
EV / EBITDA	8.99×	10.46×	13.58×	9.15×	11.15×	6.06×	9.33×	8.64×
Gross margin	61.1%	58.8%	58.7%	81.6%	95.9%	83.6%	84.1%	86.6%
Operating margin	22.9%	19.8%	21.9%	44.4%	56.1%	46.7%	47.0%	47.8%
Net margin	18.4%	15.7%	17.0%	35.7%	44.9%	38.0%	38.8%	40.8%
Current ratio	0.17×	0.12×	0.21×	0.14×	0.14×	0.23×	0.17×	0.19×
Debt / equity	0.85×	0.99×	1.37×	1.38×	0.51×	0.19×	0.16×	0.33×
Interest coverage	0.66×	0.52×	0.55×	2.77×	10.22×	6.56×	3.27×	4.34×
Dividend yield	2.0%	1.9%	2.4%	2.6%	1.2%	1.7%	0.9%	0.0%
Payout ratio	19.1%	22.4%	23.7%	15.7%	14.2%	20.0%	10.3%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.7%	11.7%	11.9%	19.7%	18.1%	14.8%	16.5%	16.7%
Return on invested capital	6.3%	5.4%	4.7%	7.5%	10.7%	11.2%	12.4%	11.1%
Return on assets	1.0%	1.0%	1.0%	1.6%	1.6%	1.4%	1.9%	1.9%
Free cash flow yield	-30.5%	-31.1%	-6.2%	33.0%	-24.6%	10.7%	11.7%	13.0%
Earnings yield	10.6%	8.7%	10.1%	16.6%	8.1%	8.4%	8.5%	10.5%
Enterprise value	$12B	$11.6B	$13.9B	$12.7B	$13.1B	$4B	$5.9B	$4.5B
Net debt / EBITDA	2.15×	2.28×	6.6×	4.55×	1.73×	-3.08×	0.08×	0.72×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0