ARECAUTIOUS

EV/EBITDA

57.0x

Higher than 100% of Real Estate sector peers

Updated 1928h ago

Sector Performance

100th percentile

ARE

57.0x

Sector Median

17.9x

Sector Avg

23.1x

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Deep Analysis

The current EV/EBITDA of 57.0x means investors are paying 57 times the company’s earnings before interest, taxes, depreciation, and amortization—a measure of operating cash flow—for the entire enterprise.

That is far above the real estate sector median of 19.3x, placing ARE in the 100th percentile among peers, indicating it is the most expensively valued stock in the sector on this basis. The metric has been completely stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no movement in either direction. The combination of an extremely high valuation and a flat trend implies no compression in the multiple, which increases the risk of a correction if earnings or growth expectations falter, with limited perceived opportunity at these levels. This directly supports the overall CAUTIOUS verdict, as the persistently elevated EV/EBITDA reinforces concerns about excessive valuation compared to industry norms.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ARE?

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 ARE's EV/EBITDA compare to its sector?

ARE's EV/EBITDA of 57.0x compares to a Real Estate sector median of 17.9x, placing it in the 100th percentile.

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

The closest Real Estate peers by EV/EBITDA include: CUBE (17.9x), O (16.9x), REG (19.7x), AVB (15.6x), AMT (20.6x).

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.