STXCAUTIOUS

EV/EBITDA

53.2x

Updated 342h ago

Sector Performance

94th percentile

STX

53.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The EV/EBITDA (enterprise value divided by earnings before interest, taxes, depreciation, and amortization) of 53.2x means investors are paying a very high price for each dollar of the company’s operating earnings, relative to typical valuations.

This multiple is far above the sector median of 13.9x, placing STX in the 95th percentile among its peers—meaning it is more expensive than 95% of similar companies. Over the last eight quarters, the metric has been increasing overall, though the year-over-year change is not available; the most recent quarter-over-quarter change shows a decline of 15.1% from 62.7x to 53.2x, following a jump from 16.4x. The combination of an extremely high level relative to peers and a recent downward move from an even higher peak implies a stretched valuation that carries downside risk if earnings fail to justify the premium. This metric directly supports the CAUTIOUS overall verdict, as the elevated multiple leaves little room for error and suggests limited upside without exceptional profit growth.

Frequently Asked Questions

What does the EV/EBITDA tell investors about STX?

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 STX'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.