ILMNNEUTRAL

EV/EBITDA

26.1x

Updated 131h ago

Sector Performance

84th percentile

ILMN

26.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

With an EV/EBITDA of 26.1x, the company is valued at 26.1 times its operating cash flow before interest, taxes, depreciation, and amortization — a metric that shows how many years of current earnings it would take to pay off its entire enterprise value.

This multiple sits far above the sector median of 13.6x and places ILMN in the 84th percentile among its peers, indicating a premium valuation relative to most comparable firms. Trend data is limited: the year-over-year change is not available, but the quarter-over-quarter increase of +34.8% (from 19.4x to 26.1x) shows a sharp upward move in a single period. The combination of a high absolute level and a rapid recent rise suggests heightened risk, as the stock price has outpaced earnings growth, creating potential for compression if fundamentals do not catch up. This metric contradicts the overall NEUTRAL verdict, because a stretched valuation in the 84th percentile typically signals downside risk that would lean toward a cautious or bearish view rather than neutral.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ILMN?

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 ILMN'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.