MCONEUTRAL

EV/EBITDA

24.1x

Updated 318h ago

Sector Performance

81th percentile

MCO

24.1x

Sector Median

13.7x

Sector Avg

18.4x

📊

Deep Analysis

Currently, MCO trades at an EV/EBITDA of 24.1x, meaning investors are paying $24.10 for every dollar of EBITDA (operating cash flow before interest, taxes, depreciation, and amortization).

This multiple sits well above the sector median of 13.9x, placing MCO in the 83rd percentile among its peers — implying the stock is valued more richly than most comparable companies. The metric has been increasing over the last eight quarters; the most recent quarter-over-quarter change is +4.4%, while the year-over-year change is not available. The combination of a high valuation level and an upward trend suggests that further price appreciation is already priced in, raising the risk of a correction if growth disappoints. At the same time, a persistently rising multiple can also reflect improving fundamentals or market optimism. This metric supports the overall NEUTRAL verdict: the elevated valuation and upward trend do not necessarily contradict a neutral stance, but they do highlight that the stock offers limited margin of safety without a clear catalyst.

Frequently Asked Questions

What does the EV/EBITDA tell investors about MCO?

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 MCO'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.