AZONEUTRAL

EV/EBITDA

14.3x

Higher than 59% of Consumer Cyclical sector peers

Updated 270h ago

Sector Performance

59th percentile

AZO

14.3x

Sector Median

10.3x

Sector Avg

15.7x

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Deep Analysis

AutoZone's current EV/EBITDA of 14.3x means the company's enterprise value is 14.3 times its earnings before interest, taxes, depreciation, and amortization — a valuation measure that accounts for debt and cash, making it useful for comparing companies with different capital structures.

This ratio sits above the sector median of 13.1x, placing AutoZone in the 60th percentile among Consumer Cyclical peers, indicating it is more expensive than most. The metric has been stable over the last eight quarters, with no year-over-year change available, but it decreased 4.3% quarter-over-quarter from 15.0x to 14.3x. A valuation above the sector median combined with a recent quarterly decline suggests cautious upside: the lower multiple could attract value-oriented buyers, but the premium relative to peers still implies limited margin of safety. This elevated level with a stable long-term trend neither confirms an overvalued red flag nor a deep bargain, which supports the overall NEUTRAL verdict.

Frequently Asked Questions

What does the EV/EBITDA tell investors about AZO?

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 AZO's EV/EBITDA compare to its sector?

AZO's EV/EBITDA of 14.3x compares to a Consumer Cyclical sector median of 10.3x, placing it in the 59th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: AEO (10.2x), APTV (10.3x), SKX (9.9x), CZR (8.9x), BALL (11.6x).

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.