CARRCAUTIOUS

EV/EBITDA

23.1x

Higher than 82% of Industrials sector peers

Updated 440h ago

Sector Performance

82th percentile

CARR

23.1x

Sector Median

14.3x

Sector Avg

25.7x

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Deep Analysis

Carrier Global's current EV/EBITDA of 23.1x means it trades at 23.1 times its earnings before interest, taxes, depreciation, and amortization — a valuation metric that compares the entire company's market value (enterprise value) to its operating cash earnings.

This is well above the Industrials sector median of 14.2x, placing Carrier in the 80th percentile among peers, indicating it is more expensive than most comparable companies. The metric has been increasing over the last eight quarters; while the year-over-year change is not available, the quarter-over-quarter change is +1.9% from 22.7x to 23.1x. The combination of a high valuation level (far above the sector median) and an upward trend suggests growing risk that the stock is priced for perfection, with limited margin for error. This elevated and rising EV/EBITDA contradicts the overall CAUTIOUS verdict by signaling potential overvaluation, but it also reinforces the cautious view that further upside may be constrained unless earnings accelerate sharply.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CARR?

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 CARR's EV/EBITDA compare to its sector?

CARR's EV/EBITDA of 23.1x compares to a Industrials sector median of 14.3x, placing it in the 82th percentile.

Who are CARR'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.