EACAUTIOUS

EV/EBITDA

34.1x

Updated 173h ago

Sector Performance

90th percentile

34.1x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

EA's EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) of 34.1x means investors are paying $34.10 for each dollar of operating cash flow, a premium that signals high expectations for future profitability.

This ratio sits far above the sector median of 13.6x, placing EA in the 90th percentile among its peers, indicating it trades at a much richer valuation than most. Over the last eight quarters the metric has been increasing, with a quarter-over-quarter rise of +0.5% (from 33.9x) and no year-over-year change available. The combination of an already elevated level and a rising trend suggests that any miss in growth or margins could lead to a sharp valuation reversion, creating downside risk for investors. This metric directly supports the overall CAUTIOUS verdict, as a high and climbing EV/EBITDA in a sector that trades at a much lower median leaves minimal room for error.

Frequently Asked Questions

What does the EV/EBITDA tell investors about EA?

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 EA'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.