EWNEUTRAL

EV/EBITDA

26.2x

Updated 102h ago

Sector Performance

84th percentile

26.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The EV/EBITDA ratio (enterprise value relative to earnings before interest, taxes, depreciation, and amortization) of 26.2x means investors are paying a high multiple for each dollar of the company's core earnings.

The sector median is 13.6x, and EW sits in the 85th percentile among peers, indicating it trades at a premium valuation. The metric has been stable over the last eight quarters, with no year-over-year change available and a quarter-over-quarter decline of -3.8% from 27.2x to 26.2x. This combination of a high level with a stable, slightly declining trend suggests limited immediate valuation risk but also limited upside from multiple expansion. The elevated multiple relative to the sector median implies that any earnings miss could lead to a sharper correction, introducing moderate risk. This premium valuation contradicts a purely bullish stance but aligns with the overall NEUTRAL verdict, as the high multiple is offset by its recent stability and small downward move.

Frequently Asked Questions

What does the EV/EBITDA tell investors about EW?

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 EW'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.