CTASNEUTRAL

EV/EBITDA

24.2x

Updated 438h ago

Sector Performance

82th percentile

CTAS

24.2x

Sector Median

13.7x

Sector Avg

18.4x

📊

Deep Analysis

CTAS trades at an EV/EBITDA of 24.2x.

EV/EBITDA compares enterprise value (market cap plus debt minus cash) to earnings before interest, taxes, depreciation, and amortization, showing how many years of pre-tax cash profits it would take to buy the whole company. This multiple is well above the sector median of 14.4x, placing CTAS in the 84th percentile among peers, meaning it is more expensive than 84% of similar companies. The metric has been decreasing: the most recent reading of 24.2x is down 1.0% quarter-over-quarter from 24.5x, and the three available historical values (24.2x, 24.5x, 32.8x) show a downward trend over the last eight quarters. A high valuation paired with a decreasing trend suggests that the stock’s premium is gradually compressing, which could reduce downside risk if the multiple continues to normalize toward the sector median. However, the current level still reflects a high market expectation for future performance. This metric supports the overall NEUTRAL verdict, as the elevated valuation warns against bullish conviction, while the declining trend tempers bearish concerns.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CTAS?

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 CTAS'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.