BLDRNEUTRAL

EV/EBITDA

11.0x

Higher than 29% of Industrials sector peers

Updated 80h ago

Sector Performance

29th percentile

BLDR

11.0x

Sector Median

14.3x

Sector Avg

25.7x

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Deep Analysis

Builders FirstSource's current EV/EBITDA of 11.0x compares its enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization — a measure of how many years of pre-tax cash flow it would take to buy the entire company.

That multiple sits well below the sector median of 14.4x, placing the stock in the 29th percentile among its Industrials peers, meaning it is cheaper than most. The year-over-year change is not available, but quarter-over-quarter the metric has declined by 10.4%, from 12.3x to 11.0x. A low EV/EBITDA combined with a downward trend suggests the market is pricing in weaker future earnings or higher risk, which could present an opportunity if the compression proves excessive, but also implies headwinds if fundamentals deteriorate further. This metric supports the overall NEUTRAL verdict: the cheap valuation offers a potential margin of safety, yet the ongoing contraction warns against a bullish stance until the trend stabilizes.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BLDR?

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 BLDR's EV/EBITDA compare to its sector?

BLDR's EV/EBITDA of 11.0x compares to a Industrials sector median of 14.3x, placing it in the 29th percentile.

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

The closest Industrials peers by EV/EBITDA include: POOL (14.3x), ROP (14.4x), MMM (14.5x), ALLE (15.8x), AOS (11.8x).

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.