HESNEUTRAL

EV/EBITDA

6.8x

Updated 1928h ago

Sector Performance

17th percentile

HES

6.8x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA compares a company's total value (including debt) to its earnings before interest, taxes, depreciation, and amortization; a lower multiple often suggests the stock is cheaper relative to its cash earnings.

At 6.8x, HES trades far below the sector median of 14.5x, placing it in the 8th percentile among peers — meaning it is valued more conservatively than most companies in its industry. Over the last eight quarters, the metric has been perfectly stable: the year-over-year change is +0.0% and the quarter-over-quarter change is also +0.0%. A low, unchanging EV/EBITDA can imply that the market sees limited growth catalysts or persistent risks that keep the valuation compressed, offering a potential value opportunity if those risks do not materialize, but also signaling a lack of upward momentum. This combination supports the overall NEUTRAL verdict — the discounted valuation could attract bargain hunters, yet the absence of any upward movement or sector-beating trend provides no clear catalyst for a bullish or bearish tilt.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HES?

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 HES'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.