SNAPCAUTIOUS

EV/EBITDA

-38.8x

Updated 331h ago

Sector Performance

3th percentile

SNAP

-38.8x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

The current EV/EBITDA of -38.8x means SNAP’s enterprise value (total market value of equity and debt) is negative relative to its earnings before interest, taxes, depreciation, and amortization, which signals that the company is currently unprofitable at the EBITDA level.

This ratio is far below the sector median of 13.9x, placing SNAP in the 1st percentile among its peers—meaning almost all competitors have a more favorable (positive) valuation multiple. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +62.4% as the metric moved from -103.2x to -38.8x. While the extremely negative level indicates financial strain and above-average risk, the sharp narrowing of the loss over the quarter suggests a potential path toward profitability, creating a mixed opportunity. This metric strongly contradicts a bullish stance and supports the overall CAUTIOUS verdict, as the negative EV/EBITDA underscores fundamental unprofitability despite the recent improvement.

Frequently Asked Questions

What does the EV/EBITDA tell investors about SNAP?

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 SNAP's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SG (-17.5x), LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x).

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.