ACGLNEUTRAL

ACGL EV/EBITDA Analysis

6.9x

Higher than 14% of Financial Services sector peers

Updated 4155h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) of 6.9x means investors are paying $6.90 for every $1 of the company’s operating profit.

Sector Performance

14th percentile

ACGL

6.9x

Sector Median

13.1x

Sector Avg

15.5x

📊

Deep Analysis

This is well below the sector median of 11.6x, placing Arch Capital in the 14th percentile among Financial Services peers. The metric has been perfectly stable: the year-over-year change is +0.0% and the quarter-over-quarter change is also +0.0%, with all eight quarters showing exactly 6.9x. A low EV/EBITDA combined with a flat trend suggests the stock is cheap relative to its sector, but the lack of movement offers no immediate catalyst for revaluation. This steady, below-median valuation implies limited downside risk but also limited upside pressure, consistent with a cautious stance. The neutral overall verdict is supported, as the low multiple is offset by the absence of upward momentum.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ACGL?

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 ACGL's EV/EBITDA compare to its sector?

ACGL's EV/EBITDA of 6.9x compares to a Financial Services sector median of 13.1x, placing it in the 14th percentile.

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

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), BAC (13.5x), PNC (11.6x), PFG (11.1x), AFL (11.0x).

📚

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.