EV/EBITDA

EV/EBITDA, or enterprise value to earnings before interest, taxes, depreciation, and amortization, measures a company's valuation relative to its operating cash flow — a lower number often suggests the stock is cheaper relative to its earnings power.

At 11.3x, CPRT trades below the sector median of 13.7x, placing it in the 35th percentile among peers, meaning it is less expensive than about two-thirds of comparable companies. The metric has been decreasing over the last eight quarters, with the most recent quarter-over-quarter change of -6.7% (from 12.1x to 11.3x); year-over-year data is not available. A below-median multiple combined with a downward trend typically indicates declining valuation expectations, which could imply lower investment risk if the business fundamentals are holding up, but also raises questions about growth prospects. This metric supports the overall NEUTRAL verdict: the lower relative valuation offers a margin of safety, yet the persistent decrease signals caution, keeping the stock in a balanced assessment without a clear bullish or bearish tilt.

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