BAYRYNEUTRAL

EV/EBITDA

7.3x

Higher than 30% of Healthcare sector peers

Updated 165h ago

Sector Performance

30th percentile

BAYRY

7.3x

Sector Median

12.8x

Sector Avg

15.5x

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Deep Analysis

EV/EBITDA, or enterprise value divided by earnings before interest, taxes, depreciation, and amortization, measures how many years of cash profits it would take to buy the company; Bayer’s current 7.3x means investors are paying a relatively low multiple for its earnings.

This is well below the healthcare sector median of 13.1x, placing Bayer in the 28th percentile among peers—meaning 72% of sector peers trade at higher multiples. The year-over-year change is not available, but quarter-over-quarter the metric rose by 14.8% from 6.3x to 7.3x. The combination of a low absolute level with a rising quarterly trend suggests the stock may be gaining relative value, yet still offers a discount that could attract value-oriented investors while signaling improving market sentiment. This metric supports the NEUTRAL verdict because the discount to peers introduces potential upside, but the single quarter of data and lack of longer trend prevent a clear bullish or bearish call.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BAYRY?

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 BAYRY's EV/EBITDA compare to its sector?

BAYRY's EV/EBITDA of 7.3x compares to a Healthcare sector median of 12.8x, placing it in the 30th percentile.

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

The closest Healthcare peers by EV/EBITDA include: BDX (12.2x), GSK (10.2x), CPRX (10.1x), BAX (10.0x), ZBH (9.7x).

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.