SONEUTRAL

EV/EBITDA

13.3x

Updated 32h ago

Sector Performance

48th percentile

13.3x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) measures how many years of cash profits it would take to buy the entire company; SO's current 13.3x suggests investors are paying $13.30 for each dollar of operating earnings.

That ratio sits just below the sector median of 13.7x, placing SO in the 48th percentile among peers—essentially in line with the typical valuation in its industry. The trend over the last eight quarters has been stable, with no year-over-year change and a quarter-over-quarter decline of just -0.1%, indicating the multiple has barely budged. Because the valuation is near the sector middle and the trend shows no momentum, the stock carries neither a compelling discount nor a premium that would create outsized risk or opportunity. This neutral positioning directly supports the overall NEUTRAL verdict, as the metric offers no clear reason to be either bullish or bearish on valuation grounds.

Frequently Asked Questions

What does the EV/EBITDA tell investors about SO?

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 SO'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.