SMTC EV/EBITDA Analysis

SMTC's EV/EBITDA of 86.4x compares its total enterprise value to its earnings before interest, taxes, depreciation, and amortization — a high multiple like this means investors are paying a large premium for each dollar of operating profit.

That multiple stands far above the sector median of 13.6x, placing SMTC in the 97th percentile among its peers, indicating it is one of the most expensive stocks in the sector on this basis. The metric has been decreasing over the last eight quarters, with a year-over-year decline of -21.2% and a quarter-over-quarter dip of -0.6%, suggesting valuation is compressing. While the current level still signals elevated risk from a high entry price, the persistent downward trend could reduce that risk if the compression continues toward more normal levels. This combination of an extremely high absolute multiple alongside a falling trend does not contradict the overall CAUTIOUS verdict — the stock remains richly valued versus peers, warranting caution despite the improvement.

Frequently Asked Questions

Closest Sector Peers