GDNEUTRAL

EV/EBITDA

16.2x

Updated 54h ago

Sector Performance

61th percentile

16.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 16.2x means that the company’s enterprise value—its total market value including debt—is 16.2 times its earnings before interest, taxes, depreciation, and amortization (a proxy for operating cash flow).

This ratio is above the sector median of 13.4x, placing GD in the 61st percentile among its peers—meaning it is more expensive than most other companies in the sector. The year-over-year change is not available, but quarter-over-quarter the metric has decreased by 2.0% from 16.5x to 16.2x. A valuation above the median suggests higher relative price, while the slight quarterly decline points to a mild compression of that premium. The combination of an elevated multiple with a downward trend could indicate that the market is beginning to reassess the stock’s valuation, reducing some risk but not yet signaling a clear undervaluation. This picture is consistent with the overall NEUTRAL verdict, as neither the level nor the trend is extreme enough to warrant a bullish or bearish tilt.

Frequently Asked Questions

What does the EV/EBITDA tell investors about GD?

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 GD'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.