ATONEUTRAL

EV/EBITDA

15.2x

Higher than 86% of Utilities sector peers

Updated 1928h ago

Sector Performance

86th percentile

ATO

15.2x

Sector Median

13.3x

Sector Avg

13.9x

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Deep Analysis

At 15.2x, EV/EBITDA compares a company’s total enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization, giving a snapshot of how expensively the market prices its operations.

This is above the Utilities sector median of 13.2x, placing Atmos Energy at the 100th percentile among peers — the highest valuation in the group. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a high valuation level with no recent movement suggests a low-risk but also low-upside opportunity, as the stock is already priced at a premium that has not shifted. This stability supports the overall NEUTRAL verdict, since the elevated multiple offers no clear margin of safety for new entry while the flat trend indicates no immediate catalyst for re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ATO?

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 ATO's EV/EBITDA compare to its sector?

ATO's EV/EBITDA of 15.2x compares to a Utilities sector median of 13.3x, placing it in the 86th percentile.

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

The closest Utilities peers by EV/EBITDA include: PEG (13.3x), PNW (13.3x), AES (13.1x), NEP (13.6x), AEE (12.7x).

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.