CMSNEUTRAL

EV/EBITDA

14.2x

Updated 269h ago

Sector Performance

54th percentile

CMS

14.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 14.2x means the company's total enterprise value (market cap plus debt minus cash) is 14.2 times its earnings before interest, taxes, depreciation, and amortization (EBITDA) — a measure of how many years of pre-tax cash profit it would take to pay off the business.

This ratio sits slightly above the sector median of 13.8x, placing CMS in the 52nd percentile among sector peers, so its valuation is near the middle of the pack. The year-over-year change is not available, but the quarter-over-quarter move shows a 2.2% increase from 13.9x to 14.2x, based on only the two most recent data points. A valuation that is both slightly above the median and rising modestly suggests limited near-term opportunity, as the stock is not obviously cheap and the upward trend could indicate increasing risk if earnings do not keep pace. This metric broadly supports the overall NEUTRAL verdict: the EV/EBITDA is in line with peers, and the small upward move does not signal a clear overvaluation or undervaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CMS?

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 CMS'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.