ALLYNEUTRAL

EV/EBITDA

10.5x

Higher than 32% of Financial Services sector peers

Updated 1078h ago

Sector Performance

32th percentile

ALLY

10.5x

Sector Median

15.1x

Sector Avg

16.7x

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Deep Analysis

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.

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 15.1x, placing it in the 32th percentile.

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

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

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.