HIGNEUTRAL

EV/EBITDA

7.0x

Updated 152h ago

Sector Performance

17th percentile

HIG

7.0x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA compares a company's enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization; a ratio of 7.0x means investors pay $7 for every $1 of operating profit.

This is well below the sector median of 13.4x, placing HIG in the 17th percentile among peers — indicating the stock is valued at a discount relative to the broader industry. The year-over-year change is not available, but the quarter-over-quarter shift shows a +6.4% increase from the prior quarter’s 6.5x. A low valuation combined with a rising trend could suggest that the discount is narrowing, which may reduce the margin of safety for new buyers while also signaling improving market sentiment. This metric alone does not contradict the overall NEUTRAL verdict, as the low multiple offers a potential value opportunity, but the upward move tempers any deep value appeal.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HIG?

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 HIG'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.