ABEVCAUTIOUS

ABEV EV/EBITDA Analysis

6.8x

Higher than 0% of Consumer Defensive sector peers

Updated 2645h ago·SEC filings & market data

Key Takeaway

Ambev's current EV/EBITDA of 6.8x means that for every dollar of its operating profit (earnings before interest, taxes, depreciation, and amortization), investors are paying $6.80 of total enterprise value (market cap plus debt minus cash).

Sector Performance

0th percentile

ABEV

6.8x

Sector Median

11.6x

Sector Avg

13.5x

📊

Deep Analysis

This multiple sits well below the sector median of 11.2x, placing Ambev at the 0th percentile among Consumer Defensive peers – the cheapest in the group. The metric shows no trend data: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no values are available for the last eight quarters. The combination of a low valuation with no measurable trajectory suggests a potential opportunity if earnings stabilize, but also carries uncertainty because you cannot see whether the low multiple is a recent drop or a sustained feature. This does not directly contradict the overall NEUTRAL verdict, as the undervaluation alone is not enough to justify a bullish call without trend confirmation, nor does it indicate a clear risk that would warrant a bearish stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ABEV?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ABEV's EV/EBITDA compare to its sector?

ABEV's EV/EBITDA of 6.8x compares to a Consumer Defensive sector median of 11.6x, placing it in the 0th percentile.

Who are ABEV's closest peers by EV/EBITDA?

The closest Consumer Defensive peers by EV/EBITDA include: ADM (11.6x), MO (8.6x), PM (18.7x), WMT (22.1x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.