COTY EV/EBITDA Analysis

COTY's current EV/EBITDA of 7.2x means the enterprise value (total company value including debt) is 7.2 times its earnings before interest, taxes, depreciation, and amortization — a low ratio that often suggests the stock is undervalued relative to its earnings power.

Compared to sector peers, this 7.2x sits well below the sector median of 13.6x, placing COTY in the 19th percentile, meaning 81% of peers trade at higher multiples. Over the last eight quarters, the EV/EBITDA trend has been decreasing, though the most recent quarter-over-quarter change shows a +6.0% rise from 6.8x to 7.2x; year-over-year data is not available. The combination of a low multiple (below sector median) with a recent uptick after a longer declining trend implies that valuation may have bottomed, but the reversal is too fresh to signal a clear turnaround, leaving risk of further compression if earnings weaken. This metric partially contradicts the overall CAUTIOUS verdict because a low EV/EBITDA typically indicates lower valuation risk, but the cautious stance likely reflects other concerns that the single ratio does not capture.

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