CPRT EV/EBITDA Analysis

EV/EBITDA compares a company's enterprise value—its market worth plus debt minus cash—to its earnings before interest, taxes, depreciation, and amortization, giving a sense of how expensive the stock is relative to operating profits.

At 12.8x, CPRT trades below the sector median of 13.5x, placing it in the 44th percentile among peers, meaning about 56% of sector companies have lower multiples. The year-over-year change is not available, but the quarter-over-quarter change is +13.5%, so the multiple has climbed from 11.3x to 12.8x in the latest period. A level below the median suggests the stock is not overpriced relative to its sector, but the rising quarter-over-quarter trend indicates the market is paying more for each unit of earnings, which can narrow the margin of safety. This combination—moderate current valuation with an upward move—implies a balanced risk profile: limited downside from being below median, but less of a bargain than prior quarter. The metric supports the overall NEUTRAL verdict, as it neither flags CPRT as clearly cheap nor as stretched relative to peers.

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