FICONEUTRAL

EV/EBITDA

27.7x

Updated 32h ago

Sector Performance

86th percentile

FICO

27.7x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Current EV/EBITDA of 27.7x means the company’s enterprise value is 27.7 times its earnings before interest, taxes, depreciation, and amortization – a high multiple that indicates investors are paying a premium for each dollar of underlying operating profit.

Compared to the sector median of 13.7x, FICO trades at nearly double the typical peer, placing it in the 86th percentile among sector peers. Over the last eight quarters the trend has been increasing, though the most recent quarter-over-quarter change shows a decline of -2.7% from 28.5x to 27.7x; a year-over-year change is not available. The combination of a very high absolute valuation with a slight recent pullback suggests the stock remains expensive but may be experiencing modest compression, implying above-average downside risk if earnings fail to justify the premium. This metric contradicts a NEUTRAL verdict because a 27.7x EV/EBITDA at the 86th percentile signals stretched pricing that often warrants caution, not a neutral stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about FICO?

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 FICO'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.