CBRENEUTRAL

EV/EBITDA

23.2x

Updated 54h ago

Sector Performance

80th percentile

CBRE

23.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation, and amortization) measures how many years of cash profits it would take to buy the entire company; at 23.2x, investors are paying a high premium relative to those profits.

This valuation is well above the sector median of 13.4x, placing CBRE in the 80th percentile among its peers. The trend information is not available because year-over-year and quarter-over-quarter changes are both marked as "N/A," meaning no historical movement can be assessed. The combination of a very high valuation with no trend data elevates the risk that the current price already reflects optimistic expectations, creating a limited margin of safety for new buyers. However, the lack of a declining trend also means there is no immediate signal of deteriorating value, leaving room for potential upside if growth meets those expectations. This metric contradicts the overall NEUTRAL verdict because the 23.2x multiple is far above the sector median, suggesting the stock is expensive relative to peers, which typically warrants a more cautious stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CBRE?

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.

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

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

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.