HRLCAUTIOUS

EV/EBITDA

10.6x

Updated 174h ago

Sector Performance

32th percentile

HRL

10.6x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

EV/EBITDA compares a company's total enterprise value (including debt) to its earnings before interest, taxes, depreciation, and amortization – a lower ratio often indicates a cheaper stock relative to its cash earnings.

At 10.6x, HRL trades below the sector median of 13.6x and sits in the 33rd percentile among peers, meaning it is priced lower than most comparable companies. The year-over-year change is not available, but quarter-over-quarter the metric fell 6.8% from 11.4x to 10.6x. The combination of a below-median multiple and a recent decline suggests reduced investor enthusiasm or near-term pressure on earnings, which could represent either a value opportunity if the business holds up or a warning if earnings weaken further. This metric supports the overall CAUTIOUS verdict because the falling EV/EBITDA aligns with the need for caution – the downward trend implies higher risk or lower growth expectations, reinforcing a conservative stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HRL?

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 HRL'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.