RARECAUTIOUS

RARE EV/EBITDA Analysis

-7.5x

Updated 12h ago·SEC filings & market data

Key Takeaway

EV/EBITDA compares a company's enterprise value to its operating earnings before interest, taxes, depreciation, and amortization; a negative value of -7.5x means RARE's EBITDA is negative, so the company is not generating positive operating cash flow on that basis.

Sector Performance

5th percentile

RARE

-7.5x

Sector Median

13.6x

Sector Avg

-62.2x

Prior Period

-7.6x(Aug 2026)

→ Stable

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Deep Analysis

This sits far below the sector median of 13.6x, placing RARE at the 5th percentile among peers, meaning nearly all comparable companies have less strained earnings multiples. The metric has been stable over the last eight quarters, with year-over-year change not available and a quarter-over-quarter decline of -7.8%, moving from -6.9x to -7.5x most recently. The combination of a deeply negative level with a stable, slightly worsening trend implies the company's operating losses are entrenched, offering limited near-term recovery signal and elevated downside risk. This directly supports the overall CAUTIOUS verdict, as the negative EV/EBITDA reinforces concern rather than offsetting it.

Frequently Asked Questions

What does the EV/EBITDA tell investors about RARE?

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 RARE's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (76.8x), OKTA (87.8x), TEAM (101.4x), STEM (102.7x).

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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.