FICO EV/EBITDA Analysis

FICO’s current EV/EBITDA of 24.3x means investors are paying 24.3 times the company’s earnings before interest, taxes, depreciation, and amortization for the whole business, a common valuation gauge that signals a premium price relative to cash profits.

That premium is clear versus peers: the sector median sits at 13.6x, placing FICO in the 82nd percentile of its peer group. The metric is decreasing over the last eight quarters, though the most recent quarter shows a jump from 22.2x to 24.3x (+9.5% quarter-over-quarter), while the year-over-year change is not available. The combination of an above-peer valuation with a recent upward move, despite the longer-term decline, suggests investors are paying more for the same earnings power now than three months ago, raising downside risk if growth slows. This elevated level and fresh QoQ increase point to stretched expectations, so the metric contradicts a NEUTRAL stance more than it supports it. Given the high percentile rank and rising quarter, the valuation leans toward caution rather than balance, despite the longer-term downward trend.

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