SJMCAUTIOUS

EV/EBITDA

9.7x

Updated 80h ago

Sector Performance

29th percentile

SJM

9.7x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The EV/EBITDA ratio of 9.7x means the company’s total enterprise value (market cap plus debt minus cash) is 9.7 times its earnings before interest, taxes, depreciation, and amortization — a lower multiple suggests the stock is cheaper relative to its cash earnings.

This value is well below the sector median of 13.6x, placing SJM in the 29th percentile of its peer group, meaning most peers trade at higher multiples. Over the last eight quarters, the metric has been stable; it declined 1.1% year-over-year and 4.1% quarter-over-quarter. A low and stable EV/EBITDA can indicate limited growth expectations but also a potential undervaluation, reducing downside risk if earnings hold. However, the slight downward trend may reflect weakening operating performance or margin pressure, which introduces some risk. This combination supports the overall CAUTIOUS verdict: the valuation appears conservative, but the declining trend warrants caution rather than outright optimism.

Frequently Asked Questions

What does the EV/EBITDA tell investors about SJM?

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 SJM'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.