ESSCAUTIOUS

ESS EV/EBITDA Analysis

20.6x

Updated 153h ago·SEC filings & market data

Key Takeaway

ESS trades at 20.6x EV/EBITDA, meaning the market values its entire enterprise at 20.6 times its operating earnings before interest, taxes, depreciation, and amortization.

Sector Performance

75th percentile

ESS

20.6x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

20.6x(Aug 2026)

→ Stable

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Deep Analysis

ESS trades at 20.6x EV/EBITDA, meaning the market values its entire enterprise at 20.6 times its operating earnings before interest, taxes, depreciation, and amortization.

That is well above the sector median of 13.5x, placing ESS in the 74th percentile among peers, so investors are paying a premium for this company. The multiple has been stable over the last 8 quarters, with no year-over-year change reported and a quarter-over-quarter increase of just 0.8%, shown by the recent readings of 20.6x, 20.4x, and 20.2x. A high, stable EV/EBITDA means the premium is priced in for the long term, leaving little room for multiple expansion and raising the risk if earnings sag. This does not contradict the overall CAUTIOUS verdict; the elevated valuation relative to peers and steady but costly multiple reinforce caution rather than opportunity.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ESS?

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 ESS's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.