ALLYNEUTRAL

ALLY EV/EBITDA Analysis

10.5x

Higher than 37% of Financial Services sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Ally Financial's current EV/EBITDA of 10.5x compares its enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization — a lower multiple often suggests cheaper valuation relative to earnings.

Sector Performance

37th percentile

ALLY

10.5x

Sector Median

13.1x

Sector Avg

15.4x

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Deep Analysis

At 10.5x, the stock trades well below the Financial Services sector median of 14.0x, placing it in the 33rd percentile among peers, meaning two-thirds of sector companies carry higher multiples. No year-over-year, quarter-over-quarter, or eight-quarter trend data is available (all N/A), so there is no historical direction to assess. The combination of a below-median EV/EBITDA with no trend information implies a valuation that may appear inexpensive, but without context on how the metric has evolved, the risk or opportunity is unclear. This metric supports the overall NEUTRAL verdict because the discounted valuation is a positive factor, yet the absence of trend data prevents a stronger bullish or bearish conclusion.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ALLY?

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 ALLY's EV/EBITDA compare to its sector?

ALLY's EV/EBITDA of 10.5x compares to a Financial Services sector median of 13.1x, placing it in the 37th percentile.

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

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), BAC (13.5x), PNC (11.6x), AFL (11.0x), PFG (10.7x).

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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.