AOSNEUTRAL

AOS EV/EBITDA Analysis

11.8x

Higher than 40% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

40th percentile

AOS

11.8x

Sector Median

12.8x

Sector Avg

50.5x

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Deep Analysis

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 12.8x, placing it in the 40th percentile.

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

The closest Industrials peers by EV/EBITDA include: POOL (13.2x), BLDR (12.4x), AVY (11.5x), AAL (11.4x), MMM (15.4x).

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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.