KONEUTRAL

EV/EBITDA

23.5x

Updated 152h ago

Sector Performance

80th percentile

23.5x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of 23.5x means the company's total value (including debt) is 23.5 times its earnings before interest, taxes, depreciation, and amortization — a measure of operating cash flow.

This ratio is well above the sector median of 13.4x, placing KO in the 80th percentile among its peers, indicating a premium valuation relative to the industry. The year-over-year change is not available, but the metric has increased 3.6% quarter over quarter from 22.6x to 23.5x. A high multiple relative to the sector combined with a rising trend suggests that investors are pricing in above-average expectations, which could amplify downside risk if those expectations are not met. This elevated valuation and upward movement imply limited margin of safety, making the stock more vulnerable to negative surprises. The NEUTRAL overall verdict is supported by this metric: the premium pricing and recent increase do not clearly signal a compelling buy or sell, instead warranting a cautious stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about KO?

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 KO'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.