CPRICAUTIOUS

EV/EBITDA

18.2x

Higher than 74% of Consumer Cyclical sector peers

Updated 144h ago

Sector Performance

74th percentile

CPRI

18.2x

Sector Median

11.5x

Sector Avg

14.9x

📊

Deep Analysis

Capri Holdings currently trades at an EV/EBITDA of 18.2x, meaning investors are paying 18.2 times the company's enterprise value relative to its earnings before interest, taxes, depreciation, and amortization — a common measure of how expensive a stock is relative to its operating cash flow.

This ratio is above the sector median of 11.2x, placing Capri in the 73rd percentile among Consumer Cyclical peers, indicating a premium valuation compared to most competitors. The metric has shown a decreasing trend over the last eight quarters, but quarter-over-quarter it rose 10.7% from 16.5x to the current 18.2x; year-over-year change is not available. The combination of an elevated multiple (well above the sector median) alongside a recent quarterly increase, despite a longer-term decline, suggests that the stock remains richly priced and valuation risk persists even as the trend has been mixed. This metric supports the overall CAUTIOUS verdict, as the premium EV/EBITDA implies limited margin of safety and leaves the stock vulnerable to downward re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CPRI?

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 CPRI's EV/EBITDA compare to its sector?

CPRI's EV/EBITDA of 18.2x compares to a Consumer Cyclical sector median of 11.5x, placing it in the 74th percentile.

Who are CPRI'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.