STEM EV/EBITDA Analysis

The current EV/EBITDA of -1461.6x means that STEM’s enterprise value (market cap plus debt minus cash) is negative relative to its earnings before interest, taxes, depreciation, and amortization — essentially, the company has negative EBITDA, making this multiple a loss-multiple rather than a profitability ratio.

Compared to the sector median of 13.6x, STEM sits in the 1st percentile among peers, meaning virtually every other company has a higher (and positive) multiple. The year-over-year change is not available, but the quarter-over-quarter change is -68082.3%, reflecting a dramatic shift from the previous value of 2.1x to the current -1461.6x. This combination of an extremely negative level and a severe downward trend indicates very high financial risk, as the company’s earnings have turned sharply negative while its valuation remains sizable. Such a metric would normally contradict a NEUTRAL overall verdict, as it signals deteriorating fundamentals rather than balanced prospects.

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