APDNEUTRAL

EV/EBITDA

57.8x

Higher than 100% of Basic Materials sector peers

Updated 1926h ago

Sector Performance

100th percentile

APD

57.8x

Sector Median

11.8x

Sector Avg

-4.1x

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Deep Analysis

Air Products and Chemicals, Inc. (APD) currently trades at an EV/EBITDA of 57.8x, meaning investors are paying nearly 58 times the company’s operating profit (before depreciation and amortization) for its entire enterprise value, including debt.

This multiple is far above the sector median of 10.5x, placing the stock in the 93th percentile among Basic Materials peers – only 7% of companies carry a higher valuation. Trend data for the metric is not available, as the year-over-year and quarter-over-quarter changes are both reported as N/A, and no historical values beyond the current 57.8x are provided. The combination of an extremely elevated valuation and the absence of any trend information creates a heightened risk that the stock is overpriced relative to peers, with no evidence of a recent decline that might offer a more attractive entry point. This metric strongly supports the overall CAUTIOUS verdict, as such a premium multiple typically signals limited upside and increased downside sensitivity to any earnings miss.

Frequently Asked Questions

What does the EV/EBITDA tell investors about APD?

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 APD's EV/EBITDA compare to its sector?

APD's EV/EBITDA of 57.8x compares to a Basic Materials sector median of 11.8x, placing it in the 100th percentile.

Who are APD'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), ALB (24.3x).

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.