AZNNEUTRAL

EV/EBITDA

15.9x

Higher than 63% of Healthcare sector peers

Updated 19h ago

Sector Performance

63th percentile

AZN

15.9x

Sector Median

12.8x

Sector Avg

15.5x

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Deep Analysis

AstraZeneca’s current EV/EBITDA of 15.9x means the company’s enterprise value (market cap plus debt minus cash) is 15.9 times its earnings before interest, taxes, depreciation, and amortization — a measure used to compare valuation across companies, with lower numbers generally indicating cheaper value.

This is above the healthcare sector median of 12.8x, placing AstraZeneca in the 63rd percentile among its peers, meaning it is more expensive than most. The metric has been increasing over the last eight quarters, with a quarter-over-quarter rise of +7.0%; no year-over-year change is available. The combination of a valuation above the sector median and a rising trend suggests that investors are paying a growing premium, which could signal heightened risk if future earnings fail to justify the higher multiple. However, for a stock rated NEUTRAL overall, this metric supports that view: the premium is moderate and the upward trend does not yet indicate extreme overvaluation, but it warrants monitoring for potential downside.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AZN?

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 AZN's EV/EBITDA compare to its sector?

AZN's EV/EBITDA of 15.9x compares to a Healthcare sector median of 12.8x, placing it in the 63th percentile.

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

The closest Healthcare peers by EV/EBITDA include: GSK (10.2x), CPRX (10.1x), BAX (10.0x), ZBH (9.7x), BIIB (8.8x).

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.