HSYNEUTRAL

EV/EBITDA

17.7x

Updated 152h ago

Sector Performance

65th percentile

HSY

17.7x

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 way to gauge whether a stock is cheap or expensive relative to its cash earnings.

At 17.7x, HSY trades above the sector median of 13.4x and sits in the 66th percentile among its peers, meaning it is more expensive than two-thirds of comparable companies. While the year-over-year change is not available, the quarter-over-quarter change shows a decline of 4.1%, from 18.5x to 17.7x. The combination of a still-premium valuation and a recent downward trend suggests moderate compression but not a bargain — it implies less downside risk than if the multiple were rising, yet limited upside opportunity without earnings growth. This metric supports the overall NEUTRAL verdict, as the above-average multiple is offset by the QoQ decline, leaving the stock reasonably priced relative to its history but not compelling versus the sector.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HSY?

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 HSY'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.