FANGNEUTRAL

EV/EBITDA

7.0x

Updated 128h ago

Sector Performance

18th percentile

FANG

7.0x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

FANG's current EV/EBITDA of 7.0x means its enterprise value (market cap plus debt minus cash) is 7.0 times its earnings before interest, taxes, depreciation, and amortization — a measure of valuation that is lower than the sector median of 13.6x.

This places the stock at the 18th percentile among sector peers, indicating it is cheaper than the vast majority. Because the year-over-year change and quarter-over-quarter change are both listed as N/A, and there is no trend data available for the last eight quarters, there is no basis to assess whether valuation is compressing or expanding. The combination of a low valuation relative to peers with no observable trend introduces uncertainty: it could signal an undervalued opportunity, but without historical context, the risk of a structural discount (rather than a temporary dip) remains unclear. This metric supports the overall NEUTRAL verdict, as the cheap valuation alone does not confirm a buy without confirming catalysts, while the lack of trend data prevents dismissing it as a value trap.

Frequently Asked Questions

What does the EV/EBITDA tell investors about FANG?

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 FANG'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.