SM EV/EBITDA Analysis

EV/EBITDA measures a company’s total value (market cap plus debt minus cash) against its operating earnings before interest, taxes, depreciation, and amortization; at 4.8x, the company trades at a low multiple, meaning investors pay $4.80 for every $1 of operating profit.

This is well below the sector median of 13.6x, placing the stock in the 12th percentile among peers—only 12% of comparable firms have cheaper valuations. The metric is decreasing over the last eight quarters, with a quarter-over-quarter drop of -37.5% from 7.7x to 4.8x; year-over-year change is not available, but the latest reading follows prior values of 7.7x and 7.3x. A falling EV/EBITDA while the stock stays neutral suggests either declining earnings, falling enterprise value, or both, and the low absolute level points to a possible value opportunity if the earnings base is stable. However, the sustained downward trend also raises the risk that the market is repricing the company lower for fundamental reasons, not just sentiment. This metric supports the overall NEUTRAL verdict because the low valuation offers upside potential, but the unbroken decline signals caution that offsets that chance.

Frequently Asked Questions

Closest Sector Peers