ALBCAUTIOUS

ALB EV/EBITDA Analysis

24.3x

Higher than 83% of Basic Materials sector peers

Updated 2087h ago·SEC filings & market data

Key Takeaway

Albemarle's EV/EBITDA of 24.3x means that for every dollar of its earnings before interest, taxes, depreciation, and amortization (EBITDA), the market values the company's entire enterprise (debt plus equity) at $24.30.

Sector Performance

83th percentile

ALB

24.3x

Sector Median

11.8x

Sector Avg

-4.1x

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Deep Analysis

This ratio sits exactly at the sector median of 24.3x, placing the stock at the 50th percentile among Basic Materials 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 the same 24.3x value recorded for each of the last eight quarters. A stable valuation at the sector median suggests no clear mispricing from this angle, but it also signals an absence of upside catalysts that would compress the multiple or downside risks that would expand it. Given the stable trend and average peer standing, the metric neither indicates unusual risk nor a compelling bargain opportunity. This neutral EV/EBITDA profile supports the CAUTIOUS verdict, as it offers no clear reason to be either more bullish or more bearish on Albemarle.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ALB?

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 ALB's EV/EBITDA compare to its sector?

ALB's EV/EBITDA of 24.3x compares to a Basic Materials sector median of 11.8x, placing it in the 83th percentile.

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

The closest Basic Materials peers by EV/EBITDA include: AG (11.8x), PPG (11.9x), AEM (9.8x), SILV (6.0x), APD (57.8x).

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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.