CACCNEUTRAL

EV/EBITDA

10.2x

Higher than 27% of Financial Services sector peers

Updated 1078h ago

Sector Performance

27th percentile

CACC

10.2x

Sector Median

15.1x

Sector Avg

16.7x

📊

Deep Analysis

Credit Acceptance Corporation's current EV/EBITDA of 10.2x means that the company's enterprise value (its market cap plus debt minus cash) is 10.2 times its earnings before interest, taxes, depreciation, and amortization — a measure used to compare value across companies while ignoring differences in capital structure.

This ratio sits well below the Financial Services sector median of 16.2x, placing the company in the 27th percentile among its peers, indicating it is relatively cheap compared to the typical sector firm. The metric shows no available trend data, with year-over-year and quarter-over-quarter changes both marked N/A, so no direction can be inferred from recent movements. The combination of a low valuation level with no trend history suggests that while the stock may appear undervalued, investors lack visibility into whether this discount is narrowing or widening. This metric supports the overall NEUTRAL verdict, as the low EV/EBITDA alone does not justify a bullish stance without trend confirmation, and the neutral view reflects the absence of clear momentum or catalyst.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CACC?

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 CACC's EV/EBITDA compare to its sector?

CACC's EV/EBITDA of 10.2x compares to a Financial Services sector median of 15.1x, placing it in the 27th percentile.

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

The closest Financial Services peers by EV/EBITDA include: SCHW (12.6x), PFG (11.6x), PNC (11.6x), PRU (11.1x), AFL (11.0x).

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.