Western Alliance Bancorporation (WAL) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Western Alliance Bancorporation

Market cap $8B · 52 weeks $67 – $96 (19 % below the high) · P/E 8.4× · 2027 expected P/E 7.2× · Dividend 2.2 % · 6 years rising · Next earnings January 25, 2027 · expected EPS $2.47 · Closing price, Oct 30 · accounts published Oct 19.

• Valuation: P/B 1.1× (justified).
• Business: ROTCE 16.7 % (excellent).
• Balance sheet: Capital/assets 8.2 % (passes, near the threshold).
• Earnings: 7 of 8 (on track).

What would it be worth at its usual multiples?

At a P/B justified by its ROTCE 16.7 % (2.0×) $143 (+87 %); at its peers' median (2.0×) $143 (+88 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in banking: 5 of 5 pass

• ROA 1.0 %, passes, near the threshold.
• ROTCE 16.7 %, passes.
• Equity / Assets (Tier 1 proxy) 8.2 %, passes, near the threshold.
• P/B (Price / Book) 1.1×, passes.
• Sustainable dividend yield 2.2 %, passes.

Against its peers (reference peers) — Western Alliance Bancorporation: P/E 8.4×; P/B 1.1×; ROE 13.1 %; $8.3B. Zions Bancorporation, National Association (P/E 8.0×; P/B 1.2×; ROE 16.2 %; $9.5B), East West Bancorp, Inc. (P/E 12.4×; P/B 2.0×; ROE 16.1 %; $17.9B), Central Bancompany (P/E 19.3×; P/B 2.3×; ROE 11.7 %; $8.6B).

Expensive or cheap against its last ten fiscal years?

P/B at each close: today 1.1× · median 1.6× · minimum 0.5× · maximum 3.6× · cheap below 1.3× · expensive above 2.7×. It has been cheaper than today only 13% of the time over its last ten fiscal years.

Dividend

solid · Yield 2.2 % ($1.70 per share in 2025) · Years raising it 6 · paying since 2019 · 5-year growth +11 % a year · Free cash flow coverage payout 19 % · With $1,000 invested today you'd collect $22.00 a year ($1.83 a month).