CTSHNEUTRAL

EV/EBITDA

5.3x

Updated 32h ago

Sector Performance

11th percentile

CTSH

5.3x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Enterprise value to EBITDA (EV/EBITDA) is a valuation ratio that compares a company’s total market value (including debt) to its earnings before interest, taxes, depreciation, and amortization.

At 5.3x, CTSH is valued well below the sector median of 13.7x, placing it in the 12th percentile among peers — meaning 88% of comparable companies have a higher multiple. The trend over the last eight quarters has been stable, with no year-over-year change available, but a quarter-over-quarter increase of +6.4% from the prior reading of 5.0x to the current 5.3x. A low EV/EBITDA combined with a stable-to-slightly-rising trend could indicate the company is undervalued relative to its earnings power, but it may also reflect higher risk or lower growth expectations in its industry. This metric supports the overall NEUTRAL verdict: the deep discount to the sector median suggests a potential value opportunity, yet the lack of clear upward momentum and the narrow recent move warrant caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CTSH?

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 CTSH'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.