NVONEUTRAL

NVO EV/EBITDA Analysis

2.0x

Updated 190h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA of 2.0x means the company’s enterprise value (total market value of debt and equity) is just 2 times its earnings before interest, taxes, depreciation, and amortization—a measure of operating profitability.

Sector Performance

10th percentile

NVO

2.0x

Sector Median

13.6x

Sector Avg

15.7x

Prior Period

2.0x(Jul 2026)

→ Stable

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Deep Analysis

This ratio is far below the sector median of 13.7x, placing NVO in the 9th percentile among peers, indicating the stock trades at a deep discount relative to its sector. The metric has been decreasing over the last eight quarters, with a year-over-year decline of 79.4% and a marginal quarter-over-quarter increase of 1.0%. A very low EV/EBITDA that is still trending downward (though with a slight recent uptick) can signal either severe undervaluation or persistent operational deterioration, heightening risk for investors seeking a turnaround. The combination of a rock-bottom level and a sharp recent drop supports caution rather than conviction, aligning with the overall NEUTRAL verdict.

Frequently Asked Questions

What does the EV/EBITDA tell investors about NVO?

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 NVO's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: MTDR (5.0x), NIO (-36.8x), SNAP (-38.8x), RBLX (-39.0x), LI (-47.0x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.