CAVANEUTRAL

EV/EBITDA

70.3x

Higher than 97% of Consumer Cyclical sector peers

Updated 168h ago

Sector Performance

97th percentile

CAVA

70.3x

Sector Median

11.5x

Sector Avg

14.9x

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Deep Analysis

CAVA Group's EV/EBITDA of 70.3x means that for every dollar of earnings before interest, taxes, depreciation, and amortization (EBITDA), investors are paying $70.30 for the enterprise value of the company — a measure of total company worth including debt.

This is extraordinarily high relative to the Consumer Cyclical sector median of 10.3x, placing CAVA in the 95th percentile among its peers. Trend data for this metric is not available: the year-over-year change is reported as N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the current reading. The combination of an extreme valuation level with no trend history suggests elevated risk — the stock is priced for very high future growth expectations, but without a trend to confirm momentum or deterioration, the opportunity is uncertain. This level alone contradicts a bullish stance but does not directly support a bearish one either, consistent with the overall NEUTRAL verdict that acknowledges the premium without clear directional signal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CAVA?

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 CAVA's EV/EBITDA compare to its sector?

CAVA's EV/EBITDA of 70.3x compares to a Consumer Cyclical sector median of 11.5x, placing it in the 97th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: PDD (7.6x), PVH (7.2x), BBY (7.0x), BBWI (6.0x), ANF (5.7x).

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.