LENCAUTIOUS

EV/EBITDA

11.3x

Updated 317h ago

Sector Performance

35th percentile

LEN

11.3x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 11.3x means the company's total enterprise value (market cap plus debt minus cash) is 11.3 times its earnings before interest, taxes, depreciation, and amortization — a measure of how many years of pre-tax cash flow it would take to buy the entire business.

This ratio sits below the sector median of 13.9x, placing LEN in the 33rd percentile among its peers, indicating it is valued more cheaply than two-thirds of comparable companies. Over the most recent eight quarters, the metric has been decreasing, with a quarter-over-quarter drop of 2.9% (from 11.6x to 11.3x); year-over-year data is not available. The combination of a below-median valuation and a declining trend suggests shrinking earnings or rising debt relative to cash flow, which may point to deteriorating fundamentals rather than a simple discount opportunity. This metric aligns with the overall CAUTIOUS verdict: the downward drift in EV/EBITDA reinforces the need for caution despite the apparent cheapness compared to peers.

Frequently Asked Questions

What does the EV/EBITDA tell investors about LEN?

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 LEN'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.