ETNCAUTIOUS

EV/EBITDA

28.6x

Updated 54h ago

Sector Performance

87th percentile

ETN

28.6x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

At 28.6x, ETN’s EV/EBITDA—a measure of enterprise value relative to earnings before interest, taxes, depreciation, and amortization—indicates the company is priced at a premium compared to its underlying operating cash flow.

The sector median is 13.4x, and ETN sits in the 87th percentile among peers, meaning it is more expensive than the vast majority of similar companies. The year-over-year change is not available, and the quarter-over-quarter change is a negligible -0.1%, suggesting the multiple has been essentially flat. A very high valuation combined with a stagnant trend implies limited upside from multiple expansion and increases the risk that future earnings may disappoint relative to expectations. This metric supports the overall CAUTIOUS verdict, as the elevated premium offers little margin of safety and demands flawless execution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ETN?

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 ETN'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.