Western Alliance Current Valuation vs. Cash Per Share

WAL-PA Preferred Stock  USD 22.28  0.22  0.98%   
Based on the measurements of profitability obtained from Western Alliance's financial statements, Western Alliance Bancorporation may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in April. Profitability indicators assess Western Alliance's ability to earn profits and add value for shareholders.
For Western Alliance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Alliance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Alliance Bancorporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Alliance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Alliance Bancorporation over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Western Alliance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Alliance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Alliance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Western Alliance Ban Cash Per Share vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Western Alliance's current stock value. Our valuation model uses many indicators to compare Western Alliance value to that of its competitors to determine the firm's financial worth.
Western Alliance Bancorporation is rated second in current valuation category among its peers. It is rated third in cash per share category among its peers . The ratio of Current Valuation to Cash Per Share for Western Alliance Bancorporation is about  697,039,547 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Western Alliance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Western Alliance's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Western Current Valuation vs. Competition

Western Alliance Bancorporation is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 119.33 Billion. Western Alliance holds roughly 10.39 Billion in current valuation claiming about 9% of equities under Financials industry.

Western Cash Per Share vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Western Alliance

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
10.39 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Western Alliance

Cash Per Share

 = 

Total Cash

Average Shares

 = 
14.91 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

Western Cash Per Share Comparison

Western Alliance is currently under evaluation in cash per share category among its peers.

Western Alliance Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Western Alliance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Alliance will eventually generate negative long term returns. The profitability progress is the general direction of Western Alliance's change in net profit over the period of time. It can combine multiple indicators of Western Alliance, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona. WESTERN ALLIANCE operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 3368 people.

Western Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Western Alliance. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Western Alliance position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Western Alliance's important profitability drivers and their relationship over time.

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Other Information on Investing in Western Preferred Stock

To fully project Western Alliance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Alliance Ban at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Western Alliance's income statement, its balance sheet, and the statement of cash flows.
Potential Western Alliance investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Western Alliance investors may work on each financial statement separately, they are all related. The changes in Western Alliance's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Western Alliance's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.