CMINEUTRAL

EV/EBITDA

19.1x

Updated 8h ago

Sector Performance

70th percentile

CMI

19.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

CMI's current EV/EBITDA of 19.1x — enterprise value divided by earnings before interest, taxes, depreciation, and amortization — measures how many times its operating earnings the market prices the entire company at, including debt.

Compared to sector peers, this multiple sits above the sector median of 13.7x and places CMI in the 70th percentile, indicating a premium valuation relative to its industry. The metric is decreasing, with a quarter-over-quarter decline of -1.8% (year-over-year change is not available), and the last three available quarterly values show a downward trend from 21.2x to 19.5x to 19.1x. A high EV/EBITDA level alongside a decreasing trend suggests the stock's valuation is compressing, which could reduce downside risk if the move toward the median continues, but it still carries a premium that leaves less room for error. This combination of a still-elevated multiple and a recent decline does not strongly contradict the overall NEUTRAL verdict, as the premium signals caution while the downward trend offers a moderating influence.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CMI?

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 CMI'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.