EDITCAUTIOUS

EV/EBITDA

-1.9x

Higher than 21% of Healthcare sector peers

Updated 94h ago

Sector Performance

21th percentile

EDIT

-1.9x

Sector Median

12.8x

Sector Avg

15.6x

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Deep Analysis

Editas Medicine's EV/EBITDA of -1.9x means that its enterprise value (the total cost to buy the company, including debt) is negative relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a measure of operating profitability.

A negative ratio typically indicates the company is not generating positive EBITDA, so it is operating at a loss. This ratio sits well below the healthcare sector median of 13.1x and places Editas in the 21st percentile among its sector peers, meaning most peers have far higher (or positive) valuations. Trend data show a year-over-year change that is not available, but the quarter-over-quarter change is -156.0%, reflecting a sharp worsening from the prior quarter's -0.8x to the current -1.9x. The combination of a deeply negative level and a deteriorating trend points to increasing operating losses and elevated risk, as the company's earnings drag is becoming more pronounced. This metric directly supports the overall CAUTIOUS verdict, since negative and worsening EV/EBITDA signals financial strain that warrants caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about EDIT?

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.

How does EDIT's EV/EBITDA compare to its sector?

EDIT's EV/EBITDA of -1.9x compares to a Healthcare sector median of 12.8x, placing it in the 21th percentile.

Who are EDIT's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: BDX (12.2x), GSK (10.2x), CPRX (10.1x), ZBH (9.7x), BAX (9.4x).

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.