AOSNEUTRAL

EV/EBITDA

11.8x

Higher than 41% of Industrials sector peers

Updated 1926h ago

Sector Performance

41th percentile

AOS

11.8x

Sector Median

14.3x

Sector Avg

25.8x

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Deep Analysis

The EV/EBITDA ratio (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) measures how many times a company’s operating earnings cover its total market value, including debt.

At 11.8x, A. O. Smith’s valuation is well below the Industrials sector median of 19.0x, placing it in the 6th percentile among peers—meaning only 6% of sector companies trade at a lower multiple. The metric has been perfectly stable over the last eight quarters, showing no year-over-year or quarter-over-quarter change (both +0.0%). This combination of a low and steady EV/EBITDA suggests limited near-term valuation risk but also no obvious catalyst for multiple expansion, implying a balanced risk/reward profile. The stable low level aligns with the overall NEUTRAL verdict, as it neither signals an undervalued opportunity nor a warning of overvaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AOS?

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 AOS's EV/EBITDA compare to its sector?

AOS's EV/EBITDA of 11.8x compares to a Industrials sector median of 14.3x, placing it in the 41th percentile.

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

The closest Industrials peers by EV/EBITDA include: POOL (14.3x), ROP (14.4x), ALLE (15.8x), MMM (15.9x), AAL (11.4x).

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.